What individuals should know
Wondering about the best strategy to fund your HSA this year? There isn’t a one-size-fits-all approaches to Health Savings Accounts, but here are a few things to consider.
First—what’s an HSA? Consumers with high deductible health plans are eligible to fund Health Savings Accounts. These savings accounts allow consumers to contribute funds tax-free to be used for qualified medical expenses. You never pay any taxes on funds used for medical expenses, and unused funds roll over every year. After age 65, you can continue to use the funds for medical expenses, or you can withdraw the funds for any use and pay only income taxes.
So how much should you contribute?