"2024 Brings Record Boost to HSA Caps: What You Need to Know"

The IRS is increasing the maximum contribution limits for health savings accounts (HSAs) in 2024 to $8,300 for families and $4,150 for individuals, up from $7,750 and $3,850, respectively. Participants age 55 and older can contribute an extra $1,000, allowing older married couples to save up to $10,300 a year. HSAs are tax-advantaged accounts that can be used to save for medical expenses, and contributions are immediately tax-deductible. Contributions can also be invested and grow tax-free, and distributions for qualified medical expenses are tax-free. However, most people use their HSAs to pay for current expenses and contribute little, and relatively few invest.