What is an HSA?
A Health Savings Account is a tax-free bank or savings account combined with a high-deductible health plan. For example, Bronze PPO plans can be HSA plans. It’s a federal program that allows you to deduct your annual contribution to that savings account from your federal income tax. You can use the money to pay for qualified healthcare expenses like the deductible on the health plan.
Who is eligible?
HSA’s are available to everyone: individuals, employers and employees.
Advantages of HSAs.
- The premiums on HSA health insurance plans are lower because the deductibles are higher.
- In 2022 an individual will be able to contribute up to $3650 annually; a family can contribute up to $7300. ***
- You can deduct this contribution from your federal income tax.
- The money you put in the account rolls over each year.
- Money can be used to pay for your deductible and other medical, dental, and vision expenses that aren’t paid for by insurance with pre-tax dollars.
- The money can be used after 65 for Medicare and Long-Term Care Insurance premiums as well as medical, dental and vision expenses.
*** If you’re over 50 years of age and just starting an HSA, you can contribute an extra $1000 annually. You can’t make contributions to your HSA once you turn 65.
How do I apply for an HSA?
We’re happy to help you through the whole process of deciding if an HSA is a good idea for you, letting you know what plans are available, and applying. Just call us 847-362-8888.