2024 HSA and FSA Contribution Limits

Presented by Marc Aarons

I’m reaching out today to share a noteworthy development that could shift how you plan for healthcare expenses in 2024.

Beginning in 2024, an inflation adjustment by the IRS will allow you to contribute more to a health savings account (HSA). In fact, it’s the most considerable increase since HSAs were first introduced in 2004.

With that in mind, the 2024 HSA limits are $4,150 (up from $3,850) for individuals and $8,300 (up from $7,750) for families. Taxpayers 55 and older can save an additional $1,000.

I would also like to share an important update regarding Flexible Spending Arrangements (FSAs) for 2024.

Effective for the 2024 plan year, employees can allocate up to $3,200 from their payroll deductions towards their FSA, an increase of $150 from 2023. Most importantly, these contributions are exempt from federal income tax, Social Security tax, and Medicare tax.

Employers and spouses with their own plans can also contribute, potentially doubling this figure. Unused amounts up to $640 can be carried over to 2025 if your FSA plan allows.

Please don’t hesitate to reach out if you have any questions or want to discuss this further. I’m here to help however I can.

Marc Aarons may be reached at 714-887-8000 or marc@ocmoneymanagers.com

www.ocmoneymanagers.com

This communication is from Money Managers, Inc.; a Securities and Exchange Commission registered investment advisor.  Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities, and past performance is not indicative of future results.  Investments involve risk and are not guaranteed.  Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed here.