![]() Let’s talk about benefits of contributing to your HSA ![]() Your HSA can help you save for retirement.ğunds in your HSA don’t expire-no “use-it-or-lose-it”.Money earned in your HSA grows tax-free.ğunds added to your HSA aren’t subject to federal income tax.Your HSA helps you pay for qualified out-of-pocket medical costs.3 Medical expenses will only increase as we get older, so setting funds aside now makes sense. For non-qualified expenses after age 65, you just pay income taxes with no additional penalty. Once you reach 65, your HSA behaves much like a 401(k) with one bonus-you don’t pay taxes on money used for QMEs. This is why HSAs can be a great strategy for retirement. The money in your HSA remains yours even after changing jobs or retiring. Unlike an FSA, your funds carry over year after year. ![]() What’s important to emphasize here is: HSAs never expire. 1 You can also invest HSA funds in mutual funds to further increase potential tax-free earnings. Money you contribute to your HSA is tax-deductible and the funds earn interest tax-free. HSAs are available to individuals enrolled in HSA-qualified health plans and can be used (tax-free) to pay for qualified medical expenses (QMEs) like doctor visits, prescription medications, dental services, and much more. Keep reading to find out more about how your HSA works, the Internal Revenue Service (IRS) allowable maximum contribution limits, how to max out your 2022 HSA contributions, how to find your tax forms, and more.Īn HSA is a special kind of savings account that can result in significant tax savings. Have a healthcare Flexible Spending Account (FSA)? Good news: you do not report your FSA contributions on your taxes and you will not get a tax form. It’s a smart, practical way to save on taxes today while also setting aside funds for future qualified medical expenses. To get right to the point, when you contribute to your HSA now you can save on your 2022 tax bill. Did you know you can potentially uncover new ways to realize tax savings? It’s true and it starts with your Health Savings Account (HSA). It’s tax season and a good time to plan ahead.
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