More Money for Health Savings in 2024

According to the Internal Revenue Service (IRS), the amount of money that people can put aside in their health savings accounts (HSAs) will go up significantly in 2024. This change is due to high inflation rates, which means the cost of living is rising faster than usual.

Bigger Savings for Health Costs

What does this mean for you? If you're an individual and only pay for your own healthcare costs, the maximum amount you can save in your HSA will increase by $300 to a total of $4,150 in 2024. This is up from $3,850 this year.

Families get a boost too! If you pay for family healthcare costs, you can save up to $8,300 in your HSA next year. That's $550 more than this year's limit of $7,750.

What's a High-Deductible Health Plan?

A "high-deductible health plan" is a type of health insurance that has a higher deductible but a lower premium. This means you pay more out-of-pocket when you need care but pay less each month.

In 2024, this type of plan will need to have an annual deductible of at least $1,600 for individuals or $3,200 for families. The total amount you would have to pay yourself (not including monthly premiums) must not be more than $8,050 for individuals or $16,100 for families.

Why is this happening?

These big increases are happening because of high inflation rates, which we haven't seen for a long time. The aim is to make sure these HSA limits stay fair, especially as life is getting more expensive for everyone.

Get Help From Tax Experts

These changes might seem confusing, but don't worry! Tax firms like D'Alessio, Tocci & Pell can help. They're experts in tax rules and can guide you through these changes. They'll make sure you understand your options and help you make the best choices for your healthcare needs and financial situation.

Health savings accounts are a great way to help manage healthcare costs. With these new higher limits, you can save even more. To make the most of these benefits, consider getting some help from tax professionals.