As consumers across the country navigate tax season and a changing health care landscape this year, the savings and control over health care spending offered by health savings accounts (HSAs) deserve a closer look.
The Affordable Care Act has changed a few aspects of HSAs; however, their triple-tax advantages remain – money deposited into an HSA is still tax deductible, interest on these savings still grows tax deferred, and funds withdrawn for qualified medical expenses are still tax-free. Any money left in the account at the end of the year rolls over to the next year, accumulating over time for use when needed, even for retirement health care costs.
Newly enhanced resources at www.HSAcenter.com enable consumers to learn more about health savings accounts and estimate potential savings, now and over time, before deciding if an HSA might be the best choice for their family’s budget and health care needs. Updated features include:
- HSA basics, including an extensive list of frequently asked questions;
- three interactive calculators to estimate health insurance savings, tax savings and future value;
- updated videos and examples of how families are using their HSAs to save;
- information on 2013 and 2014 deductibles, contribution limits and out-of-pocket maximums;
- Qualified Medical Expenses and other resources.
Consumers who already have an HSA should consider maximizing their contribution before the April 15, 2014, deadline to take advantage of their tax and savings benefits. For the 2013 tax year, HSA contributions are tax deductible up to $3,250 for individuals and up to $6,450 for families. HSA holders 55 and older can contribute and deduct an additional $1,000.
Many states also allow deductions from state taxes for HSA contributions.