The IRS is raising limits for tax-advantaged accounts that help taxpayers pay for health care expenses. Flexible spending accounts, which put pre-tax dollars into an account to cover short-term health care costs, will have a limit of $3,200 in 2024, the IRS said. That’s up from $3,050 in the current tax year.
The IRS had previously announced the new limits for health savings accounts, or HSAs, which are geared toward workers with high-deductible health care plans. These will have a new 2024 contribution limit of $4,150 for single taxpayers, an increase of 7.8%, while the contribution limit for families will increase to $8,300, or a 7.1% increase from the current year. People older than 55 can put an extra $1,000 into their HSAs, a limit that wasn’t changed this year.
