The Truth is: You Have Very Little to Lose by Qualifying for an HSA. Since HSA(Health Savings Account) emerged in 2003 as a way to save money for future medical expenses, it has been used by millions of people who worry that they will need money someday. Now in 2019, many improvements have been made to this system, what can make some people come to ask themselves, “Am I available to be covered by an HSA?”
With that in mind, we from TalliHealth will show you a quick guide with the key features of a person who is eligible to open an HSA.
– First of all, you need to be enrolled in a qualified HDHP (High Deductible Health Plans). The name says it all: this means you have a higher deductible to pay for medical expenses. Using pre-tax dollars, you can save money for paying medical expenses.
– You can’t open an HSA to yourself if you’re a dependent on someone else’s tax return.
– You can’t have another insurance plan, with some exceptions; dental and vision plans, disability insurance, long-term care plans, and worker’s comp insurance are allowed.
– To qualify for an HSA, the HDHP deductible must be at least $1,350 for an individual, but no more than $6,650. For families, it must be at least $2,700, but no more than $13,300.
When you use your money invested in HSA for qualified medical issues, you don’t pay taxes. The money you apply to your account, any earnings and any withdrawals for expenses – are all tax-free. But you can withdraw your savings from your HSA at any time for any purpose. If the money is used for an ineligible expense (whether medical or non-medical), the expenditure will be taxed and, for individuals who are not disabled or over age 65, subject to a 20% tax penalty. Each year, the IRS sets annual contribution limits for HSAs. These limits are based on your HDHP coverage level (individual or family). For 2018, the individual-only contribution limit is $3,450, and in 2019, the health savings account contribution limit increased $3,500. For families, the 2018 health savings account contribution limit is $6,900, and in 2019, the contribution limit increased to $7,000.
In conclusion, TalliHealth HSA is like a 401(k) for health; it’s the best way to build truly tax-free wealth by making tax-deductible contributions for a future medical need, investing the account for growth over time and taking tax-free distributions and reimbursements later in life.
With TalliHealth, you have a healthy present and a secure future!