If you want to take control of your health care costs by avoiding high premiums and complicated health plans, then an HSA could be the right plan for you!
A Health Savings Account, also referred to as an HSA, is a type of account that allows you to set aside pre-tax money for qualified medical expenses.
These untaxed dollars can be used on copays, deductibles, and even some over the counter (OTC) medications. Employers often offer these investment options to employees as an added means of incentivizing them to work there.
Like a Roth IRA, an HSA is an investment vehicle that allows you to manage the added expenses of retirement, like increased health care costs, so you can maintain a quality standard of living.
HSA’s enable you to manage the high costs of health care during retirement.
Since you’re lowering your taxable income, the money that you place into one of these accounts can help put you in a more forgiving tax bracket.
Additionally, these accounts allow you to offset some of your medical expenses, which is especially good news for HSA investors with high monthly medical costs.
While HSA’s are employer-sponsored, the IRS does put qualification requirements in place since the money invested will impact your taxes. To be eligible for an HSA, you must:
There is a long list of allowable expenses associated with an HSA, and it’s important that you receive a written list of those expenses from your employer.
In most cases, HSAs can be used by the employee and any of their dependents to cover the costs associated with medical, vision, or dental care. These funds can also be used to pay copays at the pharmacy and can usually be used to cover the cost of certain OTC medications.
Again, the information provided by your employer or the insurance company that handles your coverage will give you an exact list of what’s covered.
For the 2023 tax year, you can contribute a maximum of $3,850 if you are under self-only coverage. If you carry family coverage, you can contribute up to $7,750.
You may be subject to taxation if you withdraw any money from your account. However, if the money you’re withdrawing is over the contribution limit, there are instances where these taxes may be avoided.
If you’re interested in signing up for an HSA, be sure to fill out one of our forms online or click the Schedule Now button to talk to a representative who can get you started on the process.