Future Considerations

Not using HSA funds can have long-term implications for healthcare planning. Individuals may find themselves unprepared for future medical expenses if they do not actively manage their HSA. A proactive approach to utilizing HSA funds can support both immediate and future healthcare needs.

Mini FAQ

What is an HDHP? A High Deductible Health Plan is a health insurance plan with higher deductibles and lower premiums, designed to promote consumer engagement in healthcare spending.

What is an HSA? A Health Savings Account is a tax-advantaged savings account that allows individuals to save for qualified medical expenses while enrolled in an HDHP.

How can I fund my HSA? HSAs can be funded through employee contributions, employer contributions, or personal contributions, all of which may offer tax benefits.

What are the tax advantages of HSAs? HSAs offer tax-deductible contributions, tax-free withdrawals for qualified medical expenses, and tax-deferred growth on the funds.

Can I use HSA funds for non-qualified expenses? While you can, using HSA funds for non-qualified expenses may result in tax penalties and additional taxes.

What happens to my HSA if I change jobs? HSAs are portable and remain with you, allowing you to retain your savings even after changing jobs.

What are the contribution limits for HSAs? For 2023, the contribution limits are $3,850 for individuals and $7,750 for families, with catch-up contributions available for those aged 55 and older.