HSA Guide
What is an HSA? A Comprehensive Guide to Health Savings Accounts
Published August 2, 2024
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Get the appHealth Savings Accounts (HSAs) are financial accounts that offer individuals a tax-advantaged way to save for qualified medical expenses.
Here's everything you need to know about HSAs:
Benefits of an HSA:
- Contributions are tax-deductible
- Withdrawals for qualified medical expenses are tax-free
- Unused funds roll over year to year
Eligibility:
- Must be enrolled in a high-deductible health plan (HDHP)
- Cannot be claimed as a dependent on someone else's tax return
Contribution Limits:
- 2021 limits are $3,600 for individuals and $7,200 for families
- Individuals 55 and older can make catch-up contributions
HSAs offer flexibility, control, and potential long-term savings for healthcare expenses. Consider opening an HSA to take advantage of its benefits.
Health Savings Accounts (HSAs) are not just financial tools; they are a smart way to proactively manage your healthcare costs while enjoying significant tax benefits.