How to Maximize Your HSA Contributions for 2024

Are you planning to enroll in a high-deductible health plan (HDHP) in November 2024? If so, you may be wondering if it’s possible to contribute to a Health Savings Account (HSA) for 2024 before the December 1st contribution deadline. The answer is yes!

HSA Eligibility

To be eligible to contribute to an HSA, you must be enrolled in an HDHP. HDHPs have lower monthly premiums than traditional health plans, but they also have higher deductibles. The deductible is the amount you must pay out of pocket before your insurance starts to cover costs.

For 2024, the minimum deductible for an HDHP is $1,550 for individuals and $3,100 for families. The maximum out-of-pocket expenses (including the deductible, copayments, and coinsurance) for an HDHP are $7,500 for individuals and $15,000 for families.

HSA Contribution Limits

The maximum amount you can contribute to an HSA for 2024 is $3,850 for individuals and $7,750 for families. If you are 55 or older, you can make catch-up contributions of up to $1,000 per year.

HSA Last-Month Rule

The HSA last-month rule allows you to make HSA contributions for the current year up until the tax filing deadline for the following year. For 2024, the tax filing deadline is April 15, 2025. This means that you can make HSA contributions for 2024 until April 15, 2025.

Making HSA Contributions

There are two ways to make HSA contributions:

You can contribute directly to your HSA from your bank account.
Your employer can make contributions to your HSA through payroll deductions.

If you contribute to your HSA through payroll deductions, your contributions will be deducted from your paycheck before taxes are taken out. This means that you will save money on taxes.

Benefits of HSAs

HSAs offer a number of benefits, including:

Tax-free contributions
Tax-free growth of investments
Tax-free withdrawals for qualified medical expenses

HSAs are a great way to save for future medical expenses. If you are eligible for an HSA, you should consider contributing to one.

Call to Action

If you are planning to enroll in an HDHP in November 2024, you should contact our licensed agent today to learn more about HSAs and how you can maximize your contributions.