By now, you've probably heard of the generous tax benefits of having a health savings account (HSA) for those in a high-deductible health plan. The HSA is the only triple tax-advantaged account for individuals where contributions are deductible, money grows tax-free, and distributions aren't taxed, provided they're used toward a qualified medical expense or insurance premium.
HSA's index for inflation, and the IRS has just released the 2022 contribution limits. The catch-up provision remains the same for those 55 and older:
|Year||Single Plan||Family Plan||Catch-Up|
Because of the cost of insurance, more adult children who work are staying on their parent's health plans longer to the age of 26. These individuals also qualify for an HSA with contributions up to the family level. Given the larger contribution limits and more generous benefits, it could lead them to prioritize HSA's over other tax-advantaged accounts, such as IRAs.
Contact us to learn more about health savings accounts and the valuable role they can play in health and investment plans.
About Linden Wealth Management
As a fiduciary and fee-only advisor, I don't make money by selling financial products. I'm free to recommend the strategies and investments that make sense for couples and individuals based on a clear understanding of where you're heading in life.
Questions? Please reach out to me via my email with any questions that you might have.
Need more information? Visit my website!
This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax or legal advice and may not be relied on to avoid federal tax penalties. Individuals are encouraged to seek advice from their tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. Neither the information presented nor any opinion expressed constitutes a representation of a specific investment or the purchase or sale of any securities. Asset allocation and diversification do not ensure a profit or protect against loss in declining markets. This material was developed and produced by Advisor Websites to provide information on a topic that may be of interest. Copyright 2021 Advisor Websites.