Take Advantage of the Triple Tax Benefit of Health Savings Accounts

A Health Savings Account, or HSA, is a handy way to save for medical expenses and reduce your taxable income. HSA contributions are either pre-tax (if through an employer) or tax-deductible (if you opened your own), you don’t pay taxes on the account’s growth, and if you make withdrawals for eligible expenses, you don’t pay tax on those withdrawals either.

The contribution limit for self-only HSAs will increase to $3,550 and a family plan will increase to $7,100 in 2020.  If you are age 55 and older, you can make a $1,000 catch-up contribution. 

In 2020, the required amount for high-deductible health plan (HDHP) minimum deductibles is $1,400 (self-only) and $2,800 (family), respectively, and the HDHP maximum out-of-pocket amounts are $6,900 and $13,800, respectively.