HSA 2024 Limits: Inflation Drives Significant Increase

May 23, 2023 | Posted by Elevate

Every year, the Internal Revenue Service (IRS) establishes inflation-adjusted limits for health savings accounts (HSA). Thanks to recent high inflation, increases for 2024 deliver the largest-ever jump in limits.

HSA Contribution and Health Plan Limits

Real-World Impact on Tax Savings

The new limits boost the impact HSAs bring to American workers. Under these new limits, a married couple over the age of 55 can stash up to $10,300 in pre-tax dollars in HSA. For a couple making a combined $200,000, that means $3,259 in tax savings between federal and payroll taxes.1 In most states, this couple would also realize even more savings from state tax advantages.

New HSA limits mean a couple could see up to $3,259–or more!–in tax savings.

"The increase in HSA limits, particularly in the midst of challenging economic times, underscores the importance of tax-advantaged benefit accounts on the lives of today’s workforce,” said Brian Cosgray, co-founder & CEO of Elevate. “Every dollar saved through HSAs can have a real-world impact on families, providing a much-needed safety net and a pathway to a more secure future."

HSAs and Retirement

A healthy 55-year-old couple may need up to $267,000 for healthcare costs in retirement.

Healthcare savings are particularly important for those nearing retirement. A healthy 55-year-old couple may be subject to anywhere from $160,000 to $267,000 to cover added healthcare costs during their retirement, according to HealthView Services.  The increases for 2024 help those saving for retirement add a little more to that nest egg.

  1. Savings assume a 24% federal tax rate and a 7.65% FICA tax rate.
  2. Source: Bureau of Labor Statistics

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