There are two categories of HSAs: individual and family. Here are all the juicy details of what you need to know about eligibility and benefits to maximize your savings and tax value for an individual or family Health Savings Account (HSA).
Both an individual and family HSA require an HSA eligible healthcare plan, like a high deductible health plan (HDHP). Under 2017 federal regulations, HSA eligible plans must have a minimum deductible of $1,300 for an individual and $2,600 for a family. Individuals or families that don’t get healthcare from their employer are still eligible for an HSA and both are eligible for employer contributions.
2017 individual HSA contribution limits are $3,400. Using this health savings tool, you can save money for qualified medical expenses or save for out-of-pocket expenses for years to come. Just like your 401k or IRA, HSA contributions provide a safeguard for your financial health security. Just in case you get hurt, an HSA is there for you!
2017 family HSA contribution limits are $6,750. This provides an opportunity to double the potential pre-tax savings to save to this year and well into retirement. Yes – DOUBLE THE TAX SAVINGS. This creates a level of health savings for you and your family and sets you up with more savings for years to come.
[This also means that after the age of 55, families are eligible for double the individual HSA catch-up contribution, $2,000 in 2017, as designated by the IRS. Please note this requires both the individual and dependent are over the age of 55. Please note with HSAs, both the individual and dependent can only have one HSA in which they are making contributions.]
Compound Interest and HSA Investing
The unique value of a family HSA is exposed when you consider HSA investments and long-term growth. Through the awesome power of compound interest, your HSA investments can grow and grow to create more money to use for qualified medical expenses or to save for retirement. Remember after the age of 65, you can use your HSA just like a 401k or IRA. Please note HSA investments are not FDIC insured and will fluctuate based on investment growth or loss (please be sure to consult with a investment professional).
If you need more help with HSA decisions, check out our blog. We will make you a healthcare benefits expert in no time, without any extra work or effort on your end.