HSA Contributions Offer Tax Benefits

When you’re covered under a high deductible health plan (HDHP), any contributions you make to a Health Savings Account (HSA) by the April 15, 2024 tax filing deadline can be deducted.

Triple Tax Benefits

Pre-tax dollars are invested based on your preferences. Account growth and withdrawals to pay qualified medical expenses are also tax-free.

HSA Contribution Limits

For 2023, contribution limits are $3,850 for individuals and $7,750 for families. Those limits increase to $4,150 and $8,300, respectively, for 2024. Individuals 55 and older can contribute an additional $1,000.

Let It Ride

You don’t have to request reimbursement for medical expenses in the year they occur. If you save your receipts, you can submit them for a lump-sum distribution in the future.

Save for Future Care

By contributing the maximum amount to an HSA and allowing the account to grow throughout your working years, you could accumulate substantial assets to help pay for long-term care should you need it in the future.

Name a Beneficiary

Designate a beneficiary to receive any funds remaining in your HSA when you die. If you name your spouse, the account remains an HSA for his/her benefit. If you name someone other than a spouse, the HSA ends with your death. The account's fair market value then becomes taxable income to the beneficiary, less qualified medical expenses paid on your behalf.

Talk to your financial and tax professionals for more detailed information.