HSAs Offer Valuable Tax Savings &Investment Options
Health Savings Accounts (HSAs) provides unique tax benefits offered for individuals and families that are not available from traditional health insurance policies. HSAs provide another form of investment, very similar to an IRA, which allows investments to grow tax-deferred.
Unlike Flexible Spending Arrangements (FSAs), HSAs funds roll-over year-after-year and do not expire.
HSA tax benefits include:
- Contributions are 100% tax-deductible
- Obtain an annual deduction from your income taxes up to $3,000.00 for individuals and $5,950.00 for families
- HSA funds roll-over and provide tax-deferred growth
- Pay qualified long-term care insurance premiums with tax-free funds
- Range from $260 (under age 40) to $3,250 (age 71 or over)
Common Tax Terms Tax-free HSA contribution funds are untaxed or tax-exempt, based on allowable medical expenses. Tax-deductible HSA contributions may be deducted from your gross income. Tax-deferred You are not liable to pay taxes, unless HSA funds are withdrawn before age 65, your disabled, or the money is used on non-allowable medical expenses.