Top 10 Reasons to Fund Your 2015 HSA!
Do you feel yourself getting upset about the increasing cost of healthcare? Are you looking for ways to save? Have you tried a Health Savings Account (HSA)?
If not, it’s time to get with it! According to a report from Employee Benefits Research Institute (EBRI), at the end of 2014, consumers kept $24.2 billion across 13.4 million HSAs. Nearly 4 in 5 of those accounts were opened after 2010.
We asked an expert to share her advice on the topic. Tanya Boyd is President of Tanya Boyd & Associates, an insurance agency & consulting firm in Texas specializing in health insurance for businesses & individuals. She has a passion for educating consumers on ways to maximize their health insurance & overall benefit program to the fullest, through education and communication. She’s been a huge advocate of Consumer Directed Health Plans for years and loves nothing more than seeing people be smart with their money!
- Because there are tax benefits to having an HSA, Uncle Sam requires that you have a higher-deductible insurance plan (HSA-qualified plan). So, you’re not only getting the tax benefits, you’re also paying less for your insurance plan.
- You have until April 18, 2016 to fund your 2015 HSA (yes, you can go backwards!).
Below are Tanya’s top 10 reasons to have an HSA!
1. This is one of Tanya’s favorites! If you haven’t reached your HSA contribution limit for the prior year, you can lessen your tax burden by adding to your HSA right up until you pay your taxes. NOTE! Your account must have already been opened in the prior year.
2. The money you put into your HSA is 100% tax deductible! (Okay, is there anyone out there that wants to give more money to the IRS?)
3. You NEVER pay taxes on your HSA money as long as you use it for qualified medical expenses.
4. You can reimburse yourself for qualified medical expenses any time you want. For instance, let’s say you pay your qualified expenses with your American Advantage credit card to earn those airline miles. When you’re ready, you can reimburse yourself from your HSA account. No rush or deadline, but keep those medical receipts in a safe place.
5. Most HSAs offer the ability to invest, like a 401(k). Unlike a 401(k), there’s no required minimum distribution – in other words, you don’t have to take withdrawals at 70 ½ years old. So, maybe you want another investment option for retirement. You may be surprised to learn that many people use HSAs in this way. Pretty smart, actually. HSA’s can help keep retirement plans in place!
6. If you start an HSA when you’re younger, you can look forward to a nice birthday present on your 65th birthday! Use your fund to pay Medicare Premiums for Part A, B and D...tax free because this is considered a qualified healthcare expense.
7. Unused funds roll over from year to year, so it’s NOT a “use it or lose it” account (like a Flexible Spending Account).
8. It is YOUR money, even if your employer contributes. Even if you leave your job and enroll in a non-HSA compatible insurance plan, you can still use your HSA money. Note that you can’t contribute to your account if you’re no longer enrolled in an HSA-compatible insurance plan.
9. You can use your HSA funds to pay for dependents’ qualified expenses – and it’s still tax free even if they’re not on your health plan. Yep, it’s true.
10. You can use your HSA money for vision and dental expenses, so go get those braces and/or a vision correction surgery.
There are many more reasons so be sure to visit with a health insurance or employee benefits professional. Below are some links to info that can help!
Click here to learn the maximum amount you can contribute to your HSA in 2015.
Click here for a list of HSA eligible medical expenses.
Click here to learn more about HSAs.
Now, it’s your turn! Do you have an HSA? Have you saved money on your medical expenses? Comment below or email me at firstname.lastname@example.org!