A Better Way to Manage Your Healthcare Dollars
If you’re looking for a way to make healthcare more affordable, a Greenville Federal Health Savings Accounts (HSA) may be the answer. An HSA is a tax-advantaged medical savings account available to individuals who are enrolled in a qualified high-deductible health plan (HDHP). It is designed to help cover out-of-pocket medical expenses like doctor’s office visits, vision and dental care an prescriptions.
Benefits of HSA:
- Tax Advantages* – Contributions are tax-deductible, earnings are tax-deferred, and qualified withdrawals are tax-free.
- Better Medical Expense Management – With an HSA you are able to withdraw funds when you need them. These withdrawals are tax and penalty-free for qualified expenses.
- A Supplement to Retirement Income – At age 65, funds may also be withdrawn for non-qualified expenses or medical expenses not covered by Medicare (subject to income tax).
HSA Contributions
Once the eligibility requirements are met, anyone can contribute to an HSA on an individual’s behalf (the individual, the employer, their family, etc.) as long as they do not exceed the total annual maximum.
| 2020 Tax Year | Individual | Family |
|---|---|---|
|
Contribution Limits |
$3,550 |
$7,100 |
|
Catch-up Contribution Age 55 to 64 |
$1,000 |
$1,000 |
|
Minimum Annual HDHP Deductible |
$1,400 |
$2,800 |
|
Maximum Annual HDHP Deductible & Out-of-pocket Limit |
$6,900 |
$13,800 |
| 2021 Tax Year | Individual | Family |
|---|---|---|
|
Contribution Limits |
$3,600 |
$7,200 |
|
Catch-up Contribution Age 55 to 64 |
$1,000 |
$1,000 |
|
Minimum Annual HDHP Deductible |
$1,400 |
$2,800 |
|
Maximum Annual HDHP Deductible & Out-of-pocket Limit |
$7,000 |
$14,000 |
If you’d like to learn if you qualify for a Greenville Federal Health Savings Account, contact us today by calling 937-548-4158. Do you have a question? Allow us to help you. Please contact our deposit team by clicking here.
*Consult your tax advisor.
