Can you contribute to an HSA?

If you're wondering whether you can contribute to a Health Savings Account (HSA), the answer is yes! HSAs are a great way to save for medical expenses while enjoying tax advantages. Here's what you need to know:

Contributing to an HSA is easy and beneficial. You can contribute to an HSA if:

• You are covered by a High Deductible Health Plan (HDHP).
• You are not enrolled in Medicare.
• You are not claimed as a dependent on someone else's tax return.
• You are under the age of 65.

Here are some key points to consider when contributing to an HSA:

• Contributions to an HSA are tax-deductible, meaning you can lower your taxable income.
• Contributions can be made by you, your employer, or both. The combined contributions cannot exceed the annual limit set by the IRS.
• For 2021, the contribution limits are $3,600 for individuals and $7,200 for families. Individuals aged 55 or older can make an additional catch-up contribution of $1,000.
• Contributions roll over year after year, so you don't have to worry about losing any unused funds.

By contributing to an HSA, you can build a fund to cover current and future medical expenses, including deductibles, copayments, and more. Plus, the money in your HSA can grow tax-free through investments.

Start contributing to an HSA today to take advantage of its benefits and secure your financial future!

If you're considering the benefits of contributing to a Health Savings Account (HSA), it's a fantastic choice! An HSA allows you to save for eligible medical expenses while enjoying tax savings. Here’s everything you should know:

To contribute to an HSA, you need to meet certain criteria:

• You must be enrolled in a High Deductible Health Plan (HDHP).
• You cannot be enrolled in Medicare.
• You should not be listed as a dependent on someone else's tax return.
• Also, you need to be under 65 years of age.

It's important to remember these key points:

• Your HSA contributions are tax-deductible, so they decrease your taxable income.
• Both you and your employer can make contributions, but the total contributions must stay within the IRS annual limits.
• For the year 2023, contribution limits are set at $3,850 for individuals and $7,750 for families, with an additional $1,000 catch-up contribution for individuals aged 55 and older.
• Your contributions will roll over annually, meaning unused funds from one year can be utilized in the future.

By setting aside money in an HSA, you are securing a financial cushion for current and future medical costs, such as deductibles or co-pays. Plus, any growth from investments within your HSA is tax-free!

Don't hesitate—start contributing to an HSA now and experience the financial security it can provide for your health expenses!