Health Savings Accounts
A Health Savings Account (HSA) helps you manage your money on health care. There are two main components:a qualified health insurance plan and a health saving account established at a bank. The IRS established the limits, and you are allowed to set aside the maximum yearly limits to pay for qualified medical expenses tax free. You have the potential of saving money if you do not have to use the money you set aside in your HSA for medical expenses.
Equally as important, the money you save remains part of your retirement account, even if you leave your present employer. You can also save the money in your account and grow your account through investment earnings. Funds in the account can grow tax-free through investment earnings, just like an IRA In short, if you don’t use all the money in your HSA for medical expenses, it can accumulate as tax-free savings for your retirement. HSA funds must be used for qualified expenses, but many of those expenses go beyond what is covered by your health insurance plan. For example, you can use the funds for eyewear and dental expenses.
Account funds are used to cover medical expenses before the plan deductible has been met. Unspent account balances accumulate and accrue interest from year-to-year. Unlike amounts in Flexible Spending Accounts that are forfeited if not used by the end of the year, unused funds remain available for use in later years. For more information about Health Savings Accounts or to discuss your specific business needs, please contact us.
|Additional Catch-Up Contribution
(55 or older, Single and Family)