Health insurance costs continue to increase. Making sure that you have enough financial resources to cover your health care costs is an important pillar of financial security. Having a Health Savings Account might be a good idea for you.
What is a Health Savings Account?
Simply put, a Health Savings Account (HSA) is a savings account that allows you to put aside pre-tax money into an HSA to pay for qualified medical expenses. By using earnings that have not had taxes taken out–to pay for deductibles, copayments, and other qualified expenses–you can lower your health care costs.
If you are in a health plan with a deductible of at least $1,350 for an individual and $2,700 for a family, you can use an HSA. You can check to see if your health plan is “HSA eligible.”
How much can I contribute to an HSA?
In 2018, you can contribute up to $3,450 for an individual and up to $6,900 for a family. HSA funds roll over year to year if you don’t spend them. And HSAs can earn interest.