Hsa Contribution Limits 2024 Tax Deduction Over 65

Hsa Contribution Limits 2024 Tax Deduction Over 65. If you're under 65 and use the funds for other purposes, that money becomes taxable income, and you could face an additional 20% tax on the nonmedical use of hsa money. Your contribution limit increases by $1,000 if you’re 55 or older.

The irs annually evaluates limits and thresholds for various benefits and provides increases, as needed, to keep pace with inflation. For example, if you have $50,000 in taxable income and make a $3,600 deductible contribution to an hsa, you will be taxed on only $46,400 in income due to your contribution.