How is HSA affected by Trump Tax Plan?

With the Trump Tax Plan implementation, Health Savings Accounts (HSAs) have seen some significant impacts. Let's delve into how this plan affects HSAs.

Firstly, the Trump Tax Plan has increased the maximum contribution limits for HSAs:

• For individuals: $3,450 to $3,500
• For families: $6,900 to $7,000

This allows individuals and families to save more money in their HSAs, offering potential tax benefits.

Secondly, under the new tax law, funds from an HSA can be used to cover over-the-counter medications without a prescription. This provides more flexibility and convenience for HSA holders.

Moreover, the Trump Tax Plan has made it easier to deduct HSA contributions, creating additional tax advantages for those utilizing HSAs.

The implementation of the Trump Tax Plan has introduced significant modifications to Health Savings Accounts (HSAs), making them even more appealing for savvy savers. With the increase in maximum contribution limits, individuals can now contribute up to $3,500 and families up to $7,000, allowing more room for growth in these tax-advantaged accounts.