- 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 contribution and reduce your prior year tax bill at the same time. Contributions can be made up to April 15th following the due date. 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. 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.