Is HSA Tax Deductible Intact in the New Tax Bill?

Health Savings Accounts (HSAs) have been a popular option for individuals looking to save for medical expenses while enjoying tax advantages. With the changes in the recent tax bill, many may be wondering if HSA contributions are still tax deductible.

The good news is that HSAs remain tax deductible under the new tax bill. This means that individuals can still benefit from reducing their taxable income by contributing to an HSA.

Here are some key points to note about HSA tax deductibility in the new tax bill:

• HSA contributions are tax deductible, which helps reduce your taxable income.
• You can contribute to your HSA through payroll deductions, employer contributions, or personal contributions.
• For 2022, the maximum HSA contribution limits are $3,650 for individuals and $7,300 for families.
• Individuals aged 55 and older can make an additional catch-up contribution of $1,000 per year.
• Contributions made by your employer are excluded from your gross income.
• Any interest or investment earnings in your HSA are also tax-free.
• Withdrawals for qualified medical expenses are tax-free, making HSAs a powerful tool for managing healthcare costs.

Overall, HSAs continue to offer a tax-efficient way to save for healthcare expenses, and the tax deductibility of contributions remains intact in the new tax bill.

Health Savings Accounts (HSAs) provide a fantastic avenue for individuals to save for medical expenses while enjoying essential tax benefits. With the latest changes in tax legislation, many individuals may be keen to understand whether their HSA contributions remain tax deductible. Rest assured, contributions to your HSA are still tax deductible under the new tax bill, allowing you to significantly reduce your taxable income while planning for healthcare costs.