Health Savings Accounts(HSA) are a tax-preferred account that let's consumer save and spend money PRE-TAX for many medical expenses. The IRS permits those who have a qualified High Deductible Health Plan the ability to set up and fund an H.S.A.
Some attractive HSA features are as follows:
- Contributions to an H.S.A. by an individual - or employer are tax deductible (like an IRA or 401k)
- Withdrawals are Tax Free for qualified medical expenses (see IRS Publication on what qualifies here)
- Tax Deferred- any monies that grow in an H.S.A. grows tax deferred
- Unlike an F.S.A. there is no "use it or lose it" provision. Unused funds may be kept and used for future medical expenses.
HSA contribution limits for 2017.
(You can make Catch Up Contributions if you are over age 55 $1000*)
Do you have an HSA Now.....?
Here are the contributions for Last Year 2016. You have until April 18, 2017 to make contributions for tax year 2016.
* Catch-up contributions can be made any time during the year in which the HSA participant turns 55.
** Unlike other limits, the HSA catch-up contribution amount is not indexed; any increase would require statutory change.
For more info on HSA Limits see IRS Publication here.
If you are an employer an want to find out how H.S.A.'s can help you and your employees please call us at 1-888-882-2909.