What is HSA for 2017?

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What an HSA is and how it works

Health Savings Account, commonly known as HSA, is a tax-advantaged savings account that allows individuals to save money for medical expenses. It is available to individuals who are enrolled in a high-deductible health insurance plan. Contributions made to an HSA are tax-deductible, grow tax-free, and can be withdrawn tax-free when used for qualified medical expenses.

2017 contribution limits and eligible uses

In 2017, the maximum contribution limit for an HSA was $3,400 for individuals and $6,750 for families. Individuals aged 55 and older were also eligible to make an additional catch-up contribution of $1,000. HSA funds can be used for a variety of medical expenses, including doctor visits, prescriptions, and even some over-the-counter medications.

Why HSAs are valuable for medical savings

Having an HSA can provide individuals with a financial cushion for unexpected medical expenses and can also help with saving for healthcare costs in retirement. It is a valuable tool for managing healthcare expenses and can offer significant tax benefits.

A Health Savings Account (HSA) is an incredible tax-advantaged savings tool designed to help those who are enrolled in high-deductible health insurance plans manage their medical expenses better. In 2017, individuals could contribute up to $3,400, while families could set aside as much as $6,750, with an added catch-up contribution for those aged 55 and over.