Make the Most of HSA's
Are you making the most of your Health Savings Account? Do you know the contribution limits for 2022? Find out more and make the most of your money and health!
Health Savings Accounts or HSAs are a great way to decrease your taxable income and make your money work for you. Being able to take your money out pre-tax makes the money you spend on eligible healthcare expenses worth more.
For example if a single individual making 40,000 a year contributes $100 to their HSA a month for a total of $1,200 a year saves 29% in their taxable income having their contributions pre-tax. This means that each year they are saving almost $350 by contributing to their HSA, making their total purchasing power for eligible health expenses at the end of the year will be $1550!
For 2022 the amount you can contribute to an HSA has increased from 2021, and individual may now contribute $3,650 per year and a family may now contribute up to $7,300, while the Age 55+ "catch-up" amount remains the same at being able to contribute an extra $1,000 annually.
If a High Deductible Health Plan or HDHP, that is eligible for you to have an HSA, works for you HSA's can be a great boon for you to utilize and make your money work for you and save money in your HSA for a rainy day or to even draw from it as a retirement account once you reach 65 and Medicare takes over!
Contact our office to find out more about Health Savings Accounts!