How Does the New Tax Law Affect HSA?

With the new tax law in place, there are several changes that impact Health Savings Accounts (HSAs).

One significant change is that the contribution limits for HSAs have increased. This means individuals can now save more pre-tax dollars for medical expenses.

Another key impact of the new tax law on HSAs is the ability to use HSA funds to pay for over-the-counter medications without a prescription. This provides more flexibility and convenience for account holders.

Moreover, the new tax law has expanded the list of eligible medical expenses that can be paid for using HSA funds. This includes expenses such as certain health insurance premiums and long-term care services.

Additionally, the tax deduction for contributing to an HSA remains in place, allowing individuals to reduce their taxable income by contributing to their HSA.

Overall, the new tax law has made HSAs even more attractive as a way to save for medical expenses while enjoying tax benefits.

As we navigate through the recent changes brought forth by the new tax law, it's important to understand how they affect Health Savings Accounts (HSAs) and the benefits they bring for your medical expense savings.