Health Savings Accounts (HSAs)
HSAs are a savings account to which you can make tax deductible contributions and from which you can make tax-free withdrawals to pay for eligible medical expenses. Some people refer to them as a “medical IRA”. Unused funds roll over from year-to-year accumulating with interest tax-free. You are free to open an HSA account with any qualified trustee you wish and many major banks offer these accounts. Having a “High Deductible Health Plan” or “HDHP” is a requirement for opening an HSA. HSA compatible plans are available in both the public and private marketplaces and from most insurance companies. In most cases, these HSA qualifying plans will have “HDHP” in the plan name.
Click here to read my article that explains the concept further. Let me know if you have any questions.
|2023 HSA Contribution Limits||2022 HSA Contribution Limits|
There is an additional “catch-up” contribution amount of $1,000 available for those who are age 55 or older.
Talk with your tax or financial advisor about whether these tax-favored accounts are right for you. For quotes and information on HSA-compatible health plans (HDHP) we’ll be happy to help you.