Health savings accounts (HSAs) can be used for expenses such as prescriptions, eye care, dental and some over-the-counter medications. The funds contributed to your HSA are tax-deductible, reducing your taxable income. When funds are distributed out of the HSA to pay for qualified medical expenses, the funds then come out of the HSA plan tax-free.
Consider a health savings account if you meet the following conditions:
|Health savings account (HSA)||Individual: $3,350; Family $6,750; Catch-up of $1,000 if over 55)||Individual: $3,400; Family: $6,750; Catch-up of $1,000 of over 55)|