Major HSA Expansion: Higher Limits and Universal Health Coverage Eligibility.
This law significantly expands access to tax-advantaged Health Savings Accounts (HSAs). It removes the requirement that individuals must have a high-deductible health plan, making HSAs available to anyone with any health insurance coverage. Furthermore, the annual contribution limits are drastically increased, allowing families to save more than double the current amount tax-free for future medical expenses. These changes take effect starting in 2025.
Key points
Health Savings Accounts (HSAs) are now available to anyone with any health insurance coverage, eliminating the requirement for a high-deductible plan.
Maximum annual contribution limits are substantially increased: up to $8,600 for individuals and $17,100 for families.
These tax changes aimed at increasing healthcare savings opportunities take effect for taxable years beginning after December 31, 2024.
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