Each year, the Internal Revenue Service (IRS) sets contribution limits for Health Savings Accounts. These limits determine the maximum amount an individual or family can contribute to their HSA for a given tax year. It’s essential to adhere to these limits to avoid penalties or potential tax consequences. Let’s explore the contribution limits for 2024:
Individual HSA Contribution Limits:
For individuals covered by an HDHP in 2024, the maximum contribution limit will be $4,150. This means that an individual can contribute up to $4,150 to their HSA for the year. Contributions can be made throughout the year, either as regular contributions to a qualified bank account or through payroll deductions.
Family HSA Contribution Limits:
If you have a family HDHP coverage, the maximum contribution limit for 2024 will be $8,300. This limit applies to families where at least two family members are covered by an HDHP. Similar to individual contributions, family contributions can be made via regular contributions to a qualified bank account or payroll deductions.
Catch-Up Contributions:
For individuals who are 55 years of age or older, catch-up contributions are allowed. Catch-up contributions are additional contributions that can be made to an HSA beyond the regular contribution limits. There has been no change to this limit, at time of publishing.
Understanding the contribution limits of your Health Savings Account is crucial for maximizing your savings and enjoying the tax benefits offered by HSAs. By staying informed about the annual limits and adopting strategies to optimize contributions, you can make the most of your HSA and secure your financial future. Consult with your tax advisor to ensure compliance with IRS regulations and explore additional HSA-related strategies tailored to your unique circumstances.
