Lastly, HSAs are divided into three distinct categories, each with their own maximums: single accounts, family accounts, and those belonging to individuals over 55 years old.
Each year, the IRS considers whether to update HSA maximums to account for inflation. In March, it did just that, lowering the annual maximum for Family HSAs by $50.
The IRS appears to have had a sudden change of heart. On April 27, the IRS announced it was instead increasing the maximum contribution for Family HSAs from $6,850 back to $6,900. For employees older than 55, the maximum pre-tax contribution will increase from $7,850 up to $7,900.
If you work with a third party benefits or payroll administrator, ensure that their system is updated to reflect the change.
HSAs represent just one benefit that employees have increasingly come to expect. Supplementary benefits like these, when coupled with robust health, dental, and vision coverage, can make all the difference in boosting recruitment and retention.