There’s no time limit for using the money, and you can even use it tax-free for many medical expenses in retirement. ![]() What can I pay for with HSA money? Is there a time limit for using it? You can use the money tax-free for out-of-pocket medical expenses, such as your deductible, co-payments for medical care and prescription drugs, or bills not covered by insurance, such as vision and dental care. If you choose to switch to a different HSA administrator, you can transfer the money it’s similar to an IRA rollover. Compare fees, and see if you can avoid any changes by maintaining a minimum balance. Health Savings Administrators offers 22 Vanguard funds, and several fund choices from TIAA, T. HSA Bank, for example, lets you invest in mutual funds, stocks, exchange-traded funds and other investments through a TD Ameritrade brokerage account. In that case, look for an account that offers mutual funds or other long-term investment options. If you expect to use the money for current medical expenses, look for an HSA with a low-cost savings account and a debit card that makes it easy to tap the money.īut you’ll get the biggest tax benefit if you keep the money growing in the HSA for the long term and use other cash for current bills. Look for a plan with low fees and investment choices that match the way you plan to use the HSA. You can search for HSA administrators using the tool from consulting firm Devenir. Your contributions are pretax if made through your employer or tax-deductible if you’re on your own, and you can use the money tax-free for medical expenses in any year. In both years, you can also make a $1,000 catch-up contribution if you're 55 or older anytime during the year. For 2017, you can contribute up to $3,400 for self-only coverage and $6,750 for family coverage. ![]() How much can I contribute to an HSA? You can contribute up to $3,350 if you have self-only coverage in 2016, and $6,750 for family coverage. Ask your insurer or employer if the plan is HSA-eligible plans aren’t always clearly marked, especially on the state exchanges. Some plans, for example, aren’t eligible because they have a separate deductible for prescription drugs. ![]() The policy must also make everything subject to the same deductible (other than preventive care, which must be covered by all health plans without any deductible or cost-sharing). But not all high-deductible policies are HSA-eligible. How do I know if I can make HSA contributions? If your policy has a deductible of at least $1,300 for individual coverage and $2,600 for family coverage in 20, you may be eligible to contribute to an HSA.
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