Contribution Limits for Health Savings Accounts (HSAs) in 2024: A Comprehensive Guide
Health Savings Accounts (HSAs) are tax-advantaged savings accounts that allow individuals to set aside money on a pre-tax basis to cover qualified medical expenses. These accounts can provide significant savings on healthcare costs, but it’s important to understand the contribution limits to avoid penalties.
Individual and Family Plan Contributions
The contribution limits for HSAs vary depending on whether you have an individual or family health insurance plan. For 2024, the limits are as follows:
Individual plan: $4,150
Family plan: $8,300
Contribution Eligibility
To be eligible to contribute to an HSA, you must meet the following requirements:
You must be covered by a qualified high-deductible health plan (HDHP)
You cannot be enrolled in Medicare
You cannot be claimed as a dependent on someone else’s tax return
Shared Contribution Limit for Spouses
If you are married and both you and your spouse have HSA-eligible health plans, you can contribute up to the family limit. The limit is shared between the spouses, so you can divide the contributions as you wish. However, if one spouse has an individual plan and the other has a family plan, the contribution limit for the individual plan is applied.
Employer Contributions
If your employer offers an HSA-eligible health plan, they may contribute to your HSA on a pre-tax basis. However, these employer contributions count towards your annual contribution limit.
Additional Contributions
Individuals who are age 55 or older can make an additional catch-up contribution of $1,000 per year.
Penalties for Over-Contribution
If you contribute more than the allowed limit to your HSA, you may be subject to penalties. The penalty is 6% of the amount over the limit, per year. Therefore, it’s crucial to monitor your contributions carefully.
Seeking Professional Help
Understanding the HSA contribution limits can be complex. It’s advisable to consult with a licensed insurance agent or financial advisor to ensure that you are making the most of your HSA and avoiding any penalties.
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