- Published: 16 December 2016 16 December 2016
Key Benefits of Health Savings Accounts
If you have a “High Deductible Health Plan” (HDHP) and you don’t have a Health Savings Account (HSA) it is not too late to make a 2016 contribution and reduce your 2016 tax bill at the same time. HSAs are tax-deductible savings plans that enable a person to save pre-tax dollars for future healthcare expenses. Unlike a Flexible Spending Account (FSA), HSA funds roll over year to year if you don't spend them. You can take the funds with you if you change jobs or leave the work force. Your HSA may also earn interest.
HSAs allow you to pay for qualified medical expenses like your deductibles and copayments with pretax dollars. The 2016 contribution limits are $3,350 for a single individual and $6,750 for a family, they also allow holders over 55 to contribute and additional $1,000 to their qualifying plan.
HSAs can provide a tax planning benefit if utilized properly.