Smart consumers are saving thousands on health care with HSAs … are you?
While it is not exactly a secret, Health Savings Accounts (HSAs) might still be one of the most underutilized tools in financial planning, offering a unique avenue for tax savings that not enough people are paying attention to.
If you don’t already have an HSA, then listen up. We’re about to introduce you to a world of tax savings that even your 401(k) can’t offer.
Health Savings Accounts & The Triple Tax Advantage
Here’s the deal with HSAs. If you are the holder of an HSA-qualified health plan, then you are eligible to open a specialized health savings account into which you can make tax-free contributions. Those contributions then grow over time, still free of taxes. Finally the money in the HSA account can be spent tax free as long as it is for medical costs.
We in the industry call this the triple tax advantage, and it is the reason that HSAs are becoming a more and more popular way to mitigate the rising costs of healthcare in this country.
How Much Can I Contribute to an HSA?
Unfortunately, there are limits to how much money can be contributed to a Health Savings Account. These limits can change from year to year, so it’s always helpful to perform an annual review on your HSA and your health plan in general.
For 2019, the contribution limit for a single individual is $3,500.00, with an extra $1,000.00 available to HSA holders who are 55 or older.
Family HSAs have a contribution limit of $7,000.00, with an additional $1,000.00 available to HSA holders who are 55 or older.
Contact Us to Start Saving Money of Health Costs
There’s no way around it, you are going to be spending a significant chunk of your retirement money on medical expenses. In fact, it is estimated that in today’s economic climate, the average couple is going to need $285,000 to spend on medical expenses in retirement. Is that about how much you were thinking? Or is it time to stop pretending and start planning for the realities of long-term planning?
The first step in getting an HSA is enrolling in an HSA-qualified plan. Our professional advisors can not only show you which plans you are eligible for, but help you establish your health savings account for the upcoming year.
Once you’re making contributions, you’ll start to notice just how far every one of your hard earned dollars can go when Uncle Sam isn’t taking a piece of every one. Call us today and get the conversation started.
Hi! I’m Misty Berryman, and I’m one of your Personal Benefits Managers. I like working with HSA for America because we’re creating solutions to healthcare problems. Our focus on money-saving alternatives like HSA plans and health sharing programs, and the variety of health share programs we offer, are what set us apart.