💰HSA contributions are tax-deductible, reducing your taxable income.
💼You must be enrolled in a high deductible health plan to qualify for an HSA.
💵Contributions and earnings in an HSA grow tax-free, just like a Roth IRA.
💊Withdrawals from an HSA for qualified medical expenses are tax-free.
🚀HSA funds are portable, meaning they stay with you even if you change jobs.
What is the maximum annual contribution limit for an HSA?
—For 2023, the max contribution is $7,300 for families and $3,650 for individuals. There is also a catch-up contribution of $1,000 for those aged 55 and older.
Are HSA contributions tax-deductible?
—Yes, contributions to an HSA are fully deductible from your gross income on your tax return.
Can I invest my HSA funds?
—Yes, many HSA providers offer investment options, allowing you to grow your funds over time.
Is there a deadline for using HSA funds?
—There is no deadline for using HSA funds. They can be carried over from year to year and even into retirement.
Can I use HSA funds for non-medical expenses?
—While HSA funds are intended for medical expenses, after age 65, you can use them for non-medical expenses without incurring a tax penalty.
00:00In this video, we explore the benefits of the Health Savings Account (HSA).
01:12To qualify for an HSA, you must be enrolled in a high deductible health plan.
02:32HSA contributions are tax-deductible, reducing your taxable income.
03:58Contributions and earnings in an HSA grow tax-free, similar to a Roth IRA.
04:44Withdrawals from an HSA for qualified medical expenses are tax-free.
06:33HSA funds are portable, meaning they stay with you even if you change jobs.
08:18The max annual contribution for an HSA is $7,300 for families and $3,650 for individuals.
08:49HSA contributions are fully deductible from your gross income on your tax return.
