Do you know you may nonetheless fund your 2021 well being financial savings account till Tax Day on April fifteenth, 2022? A well being financial savings account or HSA is a tax-advantaged checking account that’s principally a medical IRA. You possibly can make investments your funds into shares, bonds, and different investments however the withdrawals have to be used just for certified medical bills. For those who use the funds for non-qualified medical bills, you’ll have to pay earnings taxes plus a 20% tax penalty.
To fund an HSA, you have to have enrolled in a Excessive Deductible Well being Plan or HDHP. The plans could have HDHP of their plan names. A person can contribute $3,600 into an HSA for the 2021 tax 12 months whereas a household can contribute as much as $7,200. For the 2022 tax 12 months, a person can contribute $3,650 whereas a household can contribute $7,300. Your HSA funds might be rolled over 12 months to 12 months and must be invested to hopefully develop in worth.
Examples of qualifying medical bills:
- Bodily Remedy
- Infertility Therapy
- Dependent Care (babysitting, pre-Ok, summer time day camp, earlier than & after college applications)
- Lengthy-term care premiums
- Medicare Half B & D premiums
Some frequent corporations that supply well being financial savings accounts are Constancy, Vigorous, TD Ameritrade, HSA Financial institution, Well being Fairness & Financial institution of America. If you have already got an funding account (IRA, 401k, brokerage accounts), chances are you’ll wish to see in case you can have an HSA on the identical platform as your different investments. Needless to say some HSA suppliers cost charges whereas many can be found freed from cost.
When you’ve got any questions on organising an HSA with a Excessive Deductible Well being Plan, please don’t hesitate to contact us. At Strong Well being Insurance coverage Companies, we try to assist our purchasers discover the best well being, dental, imaginative and prescient, life, and long-term care insurance coverage which most closely fits their funds and medical wants.