Health Savings Accounts are accounts used in conjunction with a health insurance policy that allows people to save money on a pre-tax basis to help pay for medical expenses. Here are some facts and benefits of a HSA:
- Offers individuals an opportunity to take advantage of their investment dollars by contributing on a tax-favored basis for current or future medical expenses. This is due to the rollover feature which now enables account holders to build up a balance to tackle unexpected major medical expenses, whether now or during retirement.
- The longer someone has the HSA, the better the forecast is for their financial security. HSA’s are portable, meaning that consumers can continue to use their HSA money even after leaving a job or the job market altogether.
- A Health Savings Account can be used only if you have a High Deducible Health Plan. An individual can continue to contribute to a HSA account as long as the individual continues to be covered by an eligible high deductible health plan (HDHP), up to the IRS Limits.
- The IRS contribution limits are as follows: Single- $3,400; Family- $6,750, 55+ Catch-up Contribution-$1,000
- HSA’s can help ensure that healthcare expenses can be covered with tax free dollars throughout a lifetime thus reducing the burden on any other funds set aside for retirement
If you have any questions about HSA’s or would like to know how you can start contributing, call one of our healthcare specialists!