Do you want to maximize your tax benefits and savings for your retirement and medical expenses? Health Savings Accounts (HSAs) might be the solution you’ve been searching for! HSAs are designed to work hand in hand with high-deductible health plans and offer a triple tax benefit that you can’t ignore:
💰 Contributions are tax-deductible
💰 The account balance grows tax-free
💰 Withdrawals for medical expenses are tax-free
And the benefits don’t stop there! Did you know that once you turn 65, you can use your HSA for non-medical purposes like a traditional IRA and pay taxes at ordinary income rates without penalties?
But wait, there’s even more! A lesser-known rule can help fund your HSA: rolling over funds from your IRA through a qualified HSA funding distribution.
Here are the key details to keep in mind:
💰 Rollover amount is limited to your HSA contribution limit for the year.
💰 For 2023, the contribution limit for individuals is $3,850, while for family coverage, it’s $7,750.
💰 Those over 55 can add a catch-up contribution of up to $1,000.
The best part? The rollover amount reduces the amount you can contribute to your HSA for the year, doesn’t count as income, and isn’t deductible. When you use this money for medical expenses, you’re turning it into tax-free money!
Ready to take full advantage of the triple tax benefit of HSAs and save big on your retirement and medical expenses?