As the seasons change and fall approaches, it’s a great time to review your health and finances—especially if you have a High Deductible Health Plan (HDHP). Health Savings Accounts (HSAs) offer unique tax advantages that can help you save money both now and in the future.
What Is an HSA?
An HSA is a tax-advantaged savings account designed to help people with HDHPs pay for qualified medical expenses.
Triple Tax Benefits
HSAs are popular because of their threefold tax benefits:
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Contributions are tax-deductible or made pre-tax through payroll.
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Earnings grow tax-free over time.
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Withdrawals for qualified medical expenses are tax-free.
Eligible Expenses
You can use HSA funds for a wide range of health expenses, including doctor visits, prescriptions, dental care, and even some over-the-counter items.
Contribution Limits and Deadlines
For 2025, individuals can contribute up to $3,850 and families up to $7,750. Contributions for the previous tax year can be made up until the tax filing deadline in April, but it’s smart to contribute early to maximize growth.
Planning for the Future
HSAs can also serve as supplemental retirement savings accounts because unused funds roll over year to year and can be invested.
If you qualify, an HSA is one of the smartest ways to save on healthcare costs while reducing your taxable income.
Want help understanding how an HSA fits into your financial and tax planning? Contact us today.
Call (678) 675-4268 or schedule a consultation:
https://ilovedoingtaxes.net/schedule-now/
