Annual Contribution Limits: The annual limitation on tax deductions is $3,500 for self-only coverage and $7,000 for family coverage.
Minimum Deductible: The minimum annual deductible under a high deductible health insurance plan (HDHP) is $1,350 for self-only coverage or $2,700 for family coverage.
Out-of-Pocket expenses: The annual out-of-pocket expenses (deductibles, co-payments, and other amounts) for a high deductible health insurance plan (HDHP) cannot exceed $6,750 for self-only coverage or $13,500 for family coverage.
What is an HSA?
A Health Savings Account (HSA) is a tax-favored saving account that is used in conjunction with a high-deductible HSA eligible health insurance plan to make healthcare more affordable and to save for retirement.
HSAs are similar to IRAs, but even better:
Pre-tax money is deposited each year into an HSA and can be easily withdrawn at any time with no penalty or taxes to pay for qualified medical expenses. Withdrawals can also be made for non-medical purposes, but will be taxed as normal income and are subject to a 10 percent penalty if done prior to age 65.
Any HSA funds not used each year remain in the account, and earn interest tax-free to supplement medical expenses at any time in the future.
Like an IRA, the account belongs to you, not your employer. But unlike an IRA, your employer CAN contribute to your HSA.
How can I get an HSA?
HSAs are available to any person in the U.S. under the age of 65 who has an HSA eligible insurance plan.
So, to get an HSA, you need to do the following:
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