Health Savings Accounts (HSAs)
In 2024, you’ll be able to set aside even more money if you have an HSA. The amounts you can contribute tax-free are increasing from $3,850 to $4,150 (for individual coverage) and from $7,750 to $8,300 (for family coverage). As a reminder, you can save on taxes in three ways with an HSA—contributions, withdrawals for qualified medical expenses, and earnings are not taxed. You can use your HSA to pay for current health care expenses or to save for eligible expenses anytime in the future.
Remember: Due to IRS rules, you cannot participate in the Health Care FSA if you elect an HDHP with an HSA. However, you can participate in a Limited Purpose FSA (LPFSA) offered exclusively for HDHP participants. The Limited Purpose FSA can be used only for eligible dental and vision expenses. If you’re enrolling in the HDHP and currently participate in the Health Care FSA, you can roll over a minimum of $30, up to $610 of your unused balance at year-end to your 2024 Limited Purpose FSA.
Flexible Spending Accounts (FSAs)
The amount you can save in a Health Care Flexible Spending Account (FSA), Limited Purpose FSA, or Dependent Care FSA may increase too. Once announced by the IRS, the new limits will be shared.