410-420-2828
If you or a spouse has been covered by group insurance, you’re probably familiar with HSA insurance. But if you’ve always been self-employed, or you’re new to this whole insurance thing, you may not be.
HSA stands for Health Savings Account. It’s essentially a savings account that lets you set aside pre-tax money to pay for qualified medical expenses. Qualified medical expenses do not include insurance premiums, but do include:
You’re eligible for an HSA if you have a High Deductible Health Plan (HDHP) either with group insurance or an individual health insurance plan, including a Marketplace plan that indicates it is “HSA eligible.”
You can contribute to your individual HSA for yourself as well as for your family. Yearly contributions are limited. For 2022, the limits were $3,650 for self, and $7,300 for family coverage.
Much like a 401K or traditional IRA, contributions to your individual HSA are pre-tax contributions that come directly from your paycheck. You can deduct the amount you contributed on your taxes. That means you never pay federal or state income tax on the amount you contributed.
In addition, HSA funds roll over to the next year if you don’t spend them. The money is always there for you to use for medical expenses. An HSA may earn interest or other earnings, which are not taxable. So, if you’re able to contribute more than you use, your HSA can become a real safety net if you should ever have major medical expenses.
To find out if an HSA is right for you, you really have to run the numbers. You need to be able to pay the high deductible, and have the money left over to be able to contribute to the plan. We can help you weigh your options. Call us at 410-420-2828 for an assessment today or use the contact form. One of our representatives will follow up with you shortly.
