To be HSA eligible, one must be enrolled in an HSA-Eligible Health Plan, not enrolled in Medicare, not claimed as a dependent and make contributions to that plan.
There are significant changes to HSA contributions in the year 2023 -2024. A single policy plan can cover up to $3,850 in 2023, and a family plan reaches up to $7,750, a staggering $400 increase from 2022. Individuals 55 or older can contribute $1,000 annually. There is an even higher increase in 2024, which will cover $4,150 for self-coverage ($300 increase), and $8,300 for family ($550 increase). There are considerable policies to take advantage of, even more advantageous than previous years.
Inflation has been a primary cause for the increase in HSA contributions from 2022-2024. Although inflation is trending downward, there is a (7-8%) increase from last year. The inflation was a response to the shift from services to goods, issues with supply chains, the shifts in the demand for housing and Russia’s Invasion of Ukraine, which dramatically increased the price of oil.
Thus far, the average account holder contributes far less than the max contribution. Now would be an ideal time to take advantage of the HSAs contributions and build a nest egg for future Medical Expenses, which can significantly impact retirement.