In case you missed our most recent webinar regarding Health Savings Accounts (HSAs) and best practices for utilizing those accounts, we are pleased to provide a summary and recording of our discussion.
Health savings accounts (HSAs) are a growing trend in health care. An HSA is a tax-exempt savings account established for the purpose of paying for the qualified medical expenses of an individual and/or his or her spouse and tax dependents. HSAs are designed to provide eligible individuals with the following federal tax benefits:
HSA contributions are tax-free.
Interest and other earnings on HSA contributions accumulate tax-free.
Amounts distributed from an HSA for qualified medical expenses are tax-free as well.
In addition to tax benefits, HSA plans have grown in popularity because they offer potential health care cost savings to both employers and employees. For example, individuals covered under an HSA are more likely to seek preventive care, choose generic drugs, not misuse the emergency room, and use online tools to research health care providers.
Other Highlights from our Discussion
Contributions limits have increased for 2022. Individuals can contribute $3,650 and Families $7,300 annually.
Unspent HSA contributions roll over from year to year unlike FSA contributions
Save when you can and spend where you can. Consider whether saving or spending your HSA contributions make the most sense for you. Compound interest is powerful!
Most HSA bank accounts offer investment opportunities for a portion of your funds to keep your dollars working for you
COBRA premiums can be paid with HSA dollars and are not subject to bankruptcy
If you are covered by Medicare you cannot contribute to an HSA; however, you are able to utilize accumulated funds from your HSA accounts to pay medical expenses in retirement.
For exclusive access to the webinar recording, click here.