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The contribution limits to health savings accounts (HSA) will increase in 2024, according to a recent announcement from the IRS. This change will allow FEHB enrollees with health savings accounts to set aside more money on a pre-tax basis for qualified medical expenses.
For self-only enrollments, the limit is raised from $3,850 in 2023 to $4,150 in 2024. For those with self-plus-one or family coverage, the contribution limit goes from $7,750 to $8,300. Participants 55 and older can continue to contribute an extra $1,000 to their HSAs.
If you have a high-deductible health care plan, you are eligible for an HSA, allowing you to make tax-free contributions that will earn tax-free interest and can be used to pay for qualified healthcare expenses tax-free. Your HSA stays with you regardless of any plan changes you make.
High-deductible health plans may save you money if you are generally healthy, without dependent children and can fully fund your health savings account. A higher deductible means you are responsible for a greater amount of your initial health care costs, but you pay lower monthly premiums.
NTEU will have more information for members about high-deducible health plans and whether they may be right for you closer to the start of federal benefits open season this fall. NTEU member also get free access to the interactive Consumers’ Checkbook’s online guide to Health Plans for Federal Employees and Annuitants.