This Just In ...
If you have a health savings account (HSA), you can sock away up to $3,350 in pre-tax dollars if you have self-only coverage through a high-deductible health plan. If you have family coverage through a high-deductible health plan, you can contribute up to $6,750.
HSAs allow individuals to put aside pre-tax dollars to pay for certain medical expenses allowed by the IRS (“qualified” expenses). Not only do you save on income taxes by reducing your taxable income, you can save even more with an HSA. Money you contribute will earn interest tax-free, and you will not be taxed on the earnings, as long as you use any withdrawals to pay for qualified medical expenses.
To open an HSA, you must have your medical coverage through a qualifying high-deductible health plan. For 2016, the plan must have an annual deductible that is not less than $1,300 for self-only coverage or $2,600 for family coverage. The plan must cap annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) at $6,550 for self-only coverage or $13,100 for family coverage.
Amounts for contributions, deductibles and out-of-pocket expenses adjust annually to account for inflation. For more information on HSAs, please contact us.
[return to top]
Your Guide to Understanding Critical Illness Insurance
The information presented and conclusions within are based upon our best judgment and analysis. It is not guaranteed information and does not necessarily reflect all available data. Web addresses are current at time of publication but subject to change. SmartsPro Marketing and The Insurance 411 do not engage in the solicitation, sale or management of securities or investments, nor does it make any recommendations on securities or investments. This material may not be quoted or reproduced in any form without publisher’s permission. All rights reserved. ©2016 The Insurance 411. www.theinsurance411.com Tel. 877-762-7877.