The Internal Revenue Service (IRS) has announced that the HSA Limit for calendar 2024 on a self-employed, single-only plan will be $4,150. It’s currently only $3,850 this year.
Family coverage will have a limit in 2024 of $8,300, up from $7,750 this year. The $450 increase on single coverage is large when compared to the increase three short years ago of only $50.
IRS officials explained that the magnitude of the increase was a simple matter of inflation. The question then becomes how much will they raise the other limits?
The standard deduction on a 1040 for a single taxpayer increased $400 between 2021 and 2022. What if it went up $1,000 this year on singles and $2,000 on MFJ’s?
This would mean that we’d need to make a lot of adjustments in our tax planning. The problem is that we don’t normally get these inflation changes until much later in the year.
We’ll see what the future brings.
Let me leave you with this.
A survey conducted in October of 2022 found that even with the resiliency of the jobs market in 2022, most American families saw a sharp decline in their financial well-being. High inflation eroding their earnings and savings was named as the culprit.
35% of adults reported they were in worse financial shape than they’d been a year before. This was the highest number reported since the survey began back in 2014.
73% of adults said they were doing either “okay” or “living comfortably”. This was down from 78% in the prior year.
Given the inflation we’ve had in the past two years, these findings are frankly to be expected, but the implications are astounding.
Whenever the financial well-being of any population declines, there’s always unrest not only in the political landscape, but also in everything from divorce rates to religious affiliations. The question becomes, how much more will our world change?
Many think that a family’s finances are only that; their ability to live reasonably. But whether or not you can pay your bills and be reasonably happy affects all aspects of your life, especially your health.
Of course this is happening after we come out of a pandemic and stare down a recession.
But no matter what happens, we’ll be here. You’re not in this alone.
We’re all going to get through this. Let’s get through it together.
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