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Maximize Your 2024 Healthcare Savings with Your HSA

Maximize Your 2024 Healthcare Savings with Your HSA

October 23, 2023

A health savings account (HSA) is more than a way to pay for certain medical costs. It can be a tax-free vehicle for boosting your income for a financially rewarding retirement. Learn more about saving for medical expenses, and beyond, in 2024.

IRS Raises HSA Contribution Limit for 2024

Are you wondering how much you can contribute to your health savings account in 2024? The IRS is increasing contribution limits by nearly 7%. That's a significant jump from the 2023 HSA contribution limit of $3,850 — up to $4,150 in 2024.1

Make a Plan

Whether you're nearing retirement or planning ahead, having a long-term strategy can help grow your account and prepare you for future health expenses. Some ways to do this include:

  • Contribute the maximum contributions allowed by the IRS
  • Max out your contributions for potential tax benefits
  • Invest in a range of mutual funds to grow your account

Tax Benefits of an HSA

One of the smartest ways to build wealth is to reduce the taxes you legally owe to the IRS. HSAs offer a triple-tax advantage, making them essential vehicles in your long-term financial plan. Here's why:

  • Any contributions you make are tax-free.
  • Your money grows tax-free since you don't owe capital gains tax if your account value increases from the original amount.
  • Spending is tax-free when you withdraw from your account to pay for qualifying medical expenses.

How Do You Get the Most from an HSA?

The clearest way to get the most out of your HSA account is to contribute the maximum amount. Here are some more tips to use your HSA to your advantage:

  • Maximize your contribution limits every year. If you're over 55, you can add up to $1,000 a year through catch-up contributions.2
  • Transfer IRA or Roth IRA funds into your HSA without incurring a penalty. However, the same annual contribution limits still apply.
  • Invest part of your savings in your HSA account to grow your savings tax-free. Any gains will remain tax-free if they are used to pay for qualifying medical expenses.

If you'd like to explore your 2024 HSA changes and benefits, contact my office.

1) Mayer, Kathryn. "IRS Gives Big Boost to HSA, HDHP Limits in 2024." SHRM, 17 May 2023, https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/2024-irs-contribution-limits-for-hsas-and-high-deductible-health-plans.aspx
2) Dore, Kate. "IRS reveals 2024 health savings account limits. What to know about the ‘significant increase,’ says advisor." CNBC, 19 May 2023, https://www.cnbc.com/2023/05/19/here-are-the-2024-contribution-limits-for-health-savings-accounts.html.

This material was developed and prepared by a third party for use by your Registered Representative. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. The content is developed from sourcesbelieved to be providing accurate information.

For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Cetera nor any of its representatives may give legal or tax advice.