Health Savings Accounts (HSAs) are an attractive benefit offering for those looking to boost their savings without sacrificing care. HSAs are tax-exempt accounts that must be coupled with a high deductible health plan (HDHP), whose unused funds can rollover year to year.
Each year, the Internal Revenue Service (IRS) sets a maximum limit employees can contribute to their savings accounts. Effective January 1, 2024, individuals with employee-only health coverage can allocate up to $4,150 in the calendar year. Individuals with family coverage can contribute up to $8,300 annually. Limits across the board are experiencing notable increases, marking some of the largest bumps in recent years.
| HEALTH SAVINGS ACCOUNT (HSA) LIMITS | 2024 | 2023 |
| SELF-ONLY CONTRIBUTION (employee + employer) |
$4,150 | $3,850 |
| FAMILY CONTRIBUTION (employee + employer) |
$8,300 | $7,750 |
| HSA CATCH-UP CONTRIBUTION (55 and over) |
$1,000 | $1,000 |
|
SELF-ONLY HDHP MINIMUM DEDUCTIBLE |
$1,600 | $1,500 |
|
FAMILY HDHP MINIMUM DEDUCTIBLE |
$3,200 | $3,000 |
| SELF-ONLY HDHP MAXIMUM OUT-OF-POCKET | $9,050 | $7,500 |
|
FAMILY HDHP MAXIMUM OUT-OF-POCKET |
$16,100 | $15,000 |
While offering an HSA option is attractive to employees and employers alike, it’s important employees know what qualified expenses can be reimbursed with HSA funds. Beyond well-known eligible expenses, like prescriptions and doctor visits, many other necessary, lesser-known expenses can be purchased with unused funds. Items like sunscreens, smoking cessation efforts and menstrual products are permitted purchases. During retirement years, funds can pay for Medicare Part B, Part D, Medicare Advantage, and long-term care premiums.
View our Fast Facts HSA video for a short, easy to understand breakdown on health savings accounts.