HSA & MSA Deductions and Contributions

If you are enrolled in a high deductible health plan, you have a health savings account (HSA). Prior to HSAs, people who are self-employed could contribute to a medical savings account (MSA) if they had a high deductible health plan. This is located on Form 1099-SA.

If you or your employer contributed to a Health Savings Account (HSA), you qualify for the HSA deduction. For both an HSA and MSA, if you contribute to either account, it is not taxable income. However, annual contributions to an MSA cannot be made by both the employer and account holder. Additionally, the deductible and the taxpayer’s income are two factors that determine the MSA annual contribution limits.

Here are the HSA minimum and maximum annual deductible as well as the out-of-pocket expenses (for 2024).

Self-only coverage:

• Minimum annual deductible – $1,600
• Maximum annual deductible and other out-of-pocket expenses* – $8,050

Family coverage:

• Minimum annual deductible – $3,200
• Maximum annual deductible and other out-of-pocket expenses* – $16,100

Here are the MSA minimum and maximum annual deductible as well as the out-of-pocket expenses (for 2023).

Self-only coverage:

• Minimum annual deductible – $2,650
• Maximum annual deductible and other out-of-pocket expenses – $3,950
• Maximum annual out-of-pocket expenses – $5,300

Family coverage:

• Minimum annual deductible – $5,300
• Maximum annual deductible and other out-of-pocket expenses – $7,900
• Maximum annual out-of-pocket expenses – $9,650

For more information, click here.

This entry was posted on Monday, November 16th, 2020 at 2:32 pm and is filed under Deductions. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.