New Health Savings Account Contribution Limits Are on the Horizon

Published On: September 20th, 2023Categories: Accounting, Consulting, Financial Planning, Individual, Taxes

Contribution limits for the ever-popular health savings account (HSA) are set for 2024. And inflation adjustments break through the historic trends of 1 to 2% increase each year. Next year the amount you can save to pay for health costs with pre-tax dollars jumps by more than 7%!

HSA Defined
An HSA is a tax-advantaged savings account whose funds can be used to pay qualified health care costs for you, your spouse, and your dependents. The account is a great way to pay for qualified health care costs with pre-tax dollars. In fact, any investment gains on your funds are also tax-free as long as they are used to pay for qualified medical, dental, or vision expenses. Unused funds may be carried over from one year to the next. To qualify for this tax benefit, you must be enrolled in a high-deductible health plan (HDHP).

The Limits

2024 HSA Limits

Note: An HDHP plan has minimum deductible requirements that are typically higher than traditional health insurance plans. To qualify for an HSA, your health coverage must have out-of-pocket payment limits in line with the maximums noted above.

The key is to maximize funds to pay for your medical, dental, and vision care expenses with pre-tax money. By building your account now, you could have a nest egg for unforeseen future expenses.

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About the Author: John Albanese

John Albanese joined Eccezion in 1999, right after earning his Bachelor of Arts in Business Accounting from Trinity International University, and made partner at the age of 26. The McHenry native has built his reputation serving a variety of clients in both audit and tax capacities, developing into a go-to for construction companies.