TaxWatch: Health savings accounts contributions increase at steepest level since HSAs were rolled out in 2004

by | May 19, 2023 | Stock Market

People who have health savings accounts are getting a big opportunity next year — a shot to contribute much more to these tax-advantaged savings accounts. It’s a win for families trying to defray medical expenses as inflation rates slowly come off their pricey perch, observers say. It’s also a win for people who can afford to turn the accounts into a long-term wealth building vehicle.

Health savings accounts are used to offset the pain of high-deductible health-care plans. With high-deductible plans, customers pay a lower premium, but they pay more for their medical services. With HSAs, pretax dollars are used to pay out-of-pocket health-care expenses. Money deposited in HSAs can roll over from year to year, and may be invested in a wide range of mutual funds. Many people, however, do not have access to these accounts through their health-insurance plan.

“For 2024, a person can contribute up to $4,150 in an HSA, …

Article Attribution | Read More at Article Source

Share This