Are You HSA Aware?
Updated: Nov 22, 2022
Health Savings Accounts or HSA’s are one of the best things Congress ever passed as they can provide tremendous financial benefits to individuals and families. Who is eligible? Health Savings Accounts are available to anyone enrolled in a qualified high deductible health plan. This can be a qualifying individual plan or a qualifying group health insurance plan. Attractive Tax Advantages Health Savings Accounts are triple tax advantaged providing real value to insureds and families today and tomorrow.
HSA contributions are tax deductible. For 2022 the maximum annual contributions are $3,650 for individuals and $7,300 for families. An additional $1,000 annual “catch-up” contribution is also available for individuals age 55 and older.
HSA contributions grow tax free. Monies in a Health Savings Account can be invested in a variety of vehicles such as mutual funds etc. All gains /returns on these investments are also tax free.
HSA distributions are tax free. When HSA monies are withdrawn for eligible medical expenses these withdrawals are tax free.
Due to these very attractive tax breaks financial professionals will often advise clients to stuff their HSA first each year to make sure they maximize the available value. HSA balances are also yours for life, meaning there is no use it or lose it requirement. The funds can be used at any point in your lifetime.