Have you ever considered investing in a Health Savings Account?
A Health Savings Account (HSA) is a type of account that allows an individual to set aside money on a pre-tax basis to pay for qualified medical expenses. Individuals who have a qualified high deductible health plan are eligible to make contributions to an HSA up to an annual maximum each year. Those current maximums for 2023 are $3,850 if they have an individual only coverage option, and $7,750 if they have a family coverage option.
Key Features of an HSA
- Contributions made by an individual are tax deductible for that tax year.
- The growth incurred in the account is considered tax free. HSA dollars can be invested in a wide array of options to include but not limited to stocks, bonds, and mutual funds.
- Tax free withdrawals if used for qualified medical expenses.
- Ability to name beneficiaries.
- At the age of 65 the balance can be used to pay for Medicare (Part B and Part D) premiums, Medicare advantage plan copays, and long-term care insurance premiums.
Connect with an FSB Premier Financial Advisor to learn more!