HEALTH SAVINGS ACCOUNT
Health savings accounts were created to help individuals and families save for qualified medical expenses on a tax-free basis.
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:
- You have a high-deductible health plan.
- You are generally not covered by any health plan that is not a high-deductible plan.
- You are not enrolled in Medicare.
- You may not be claimed as a dependant on another person’s tax return.
|Health savings account (HSA)||Individual: $3,450; Family: $6,900; Catch-up of $1,000 of over 55)||Individual: $3,500; Family: $7,000; Catch-up of $1,000 of over 55)|