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:
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.
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