HSA Account Rules 2017 - Understanding the Guidelines for Health Savings Accounts

Health Savings Accounts (HSAs) have become a popular way for individuals to save money for medical expenses while enjoying tax benefits. If you are considering opening an HSA account or already have one, it is crucial to understand the rules and guidelines that apply, especially for the year 2017. Here are some key rules to keep in mind:

Contribution Limits:

• In 2017, the contribution limit for individuals with self-only coverage is $3,400, and for those with family coverage, it is $6,750.

Eligibility Criteria:

• To qualify for an HSA, you must be covered by a High Deductible Health Plan (HDHP) and not be enrolled in Medicare.

Tax Benefits:

• Contributions to an HSA are tax-deductible, and withdrawals for qualified medical expenses are tax-free.

Employer Contributions:

• Employers can contribute to your HSA, but the total contributions (from both you and your employer) cannot exceed the annual limits.

It's essential to familiarize yourself with these rules to make the most of your HSA account and avoid any penalties or IRS scrutiny. By staying informed and following the guidelines, you can effectively manage your healthcare expenses and save for the future.

Health Savings Accounts (HSAs) have emerged as a smart choice for individuals looking to save for medical expenses while reaping tax benefits. Understanding the rules governing HSAs, especially for the year 2017, is crucial for maximizing these advantages.

Contribution Limits:

• For 2017, the maximum contribution for individuals enrolled in self-only coverage stands at $3,400, while those with family coverage can contribute up to $6,750.

Eligibility Requirements:

• To be eligible for an HSA, you must have a High Deductible Health Plan (HDHP) and must not be enrolled in Medicare.

Tax Advantages:

• The beauty of HSAs lies in their tax benefits: contributions are tax-deductible, and any withdrawals for eligible medical expenses are tax-free, helping you keep more of your hard-earned money.

Employer Contributions:

• Many employers contribute to HSAs, but keep in mind that the total contributions (including your own) cannot exceed the set annual limits. This could be an excellent way to increase your savings.