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April 05, 2010
Health Savings Accounts Make More Expenses Tax Deductible
A Health Savings Account (also called a HSA) allows you to take tax deductions for more expenses to reduce your taxable annual income. In addition to your own health-related expenses, you can take tax deductions for what you spend on health-related expenses from your HSA for your spouse and dependent family members.
If you’re under 65, you can open a HSA just like other forms of savings accounts. Unlike most savings accounts, though, Health Savings Accounts earn tax-free interest. If you don’t need to spend what you contribute to your HSA, you can let it grow until you need it for your retirement. And when you’re over the age of 65, there’s no penalty to withdraw money from your HSA.
You’ll need to combine your HSA with one of the high-deductible health insurance plans that are qualified to work with Health Savings Accounts. Your family members do not have to be covered under your insurance in order for you to take tax-deductions for what you spend on their qualified expenses. If you‘re covered by other health insurance, you can still keep your HSA. You just can’t have medical expenses paid both through your HSA, and other insurance.
To learn more about how you can use the tax advantages of a HSA, check out HSA for America. It’s simple to compare HSA insurance plans and apply online, but you can also consult with experts on Health Savings Accounts at no cost. You can call our expert advisors at 866-749-2039 to discuss which Health Savings Account options work best for your situation.
Posted by Wiley Long at April 5, 2010 01:33 AM