HSA Accounts Can Help You Maximize Deductions for Medical Expenses

Published: 5/17/2015 2:22:38 PM

What is an HSA? An HSA is a tax-advantaged savings account to pay for qualified health care costs for you, your spouse, and your dependents. When contributions are made through an employer, they are made on a pre-tax basis. There is no tax on the withdrawn funds, the interest earned, or investment gains as long as the funds are used to pay for qualified medical, dental, and vision expenses. Unused funds may be carried over from one year to the next. To qualify for this tax-advantaged account you must be enrolled in a "high deductible" health insurance program as defined by HSA rules. A plan must meet minimum deductible requirements that are typically higher than traditional health insurance. In addition, your coverage must have reasonable out-of-pocket payment limits. Not sure what an HSA is all about? Check with your employer. If they offer this option in their health care benefits, they will have information discussing the program and its potential benefits. You may also open an HSA account on your own at most financial institutions. Opening and HSA independently of your employer may offer more flexibility. In some cases an HSA established through your employer may result in funds reverting to the employer if not used by the end of the calendar year. The funds deposited to an HSA opened independently at your own financial institution belong to you and will accumulate from one year to the next.- See more at: http://jamesaccounting.net/2016-health-savings-account-limits/#sthash.FBXqDx5J.dpuf