04/13/2021
~ TAX TIP TUESDAY.....~
• If you have an HSA use it as much as possible ... if you are enrolled in a high deductible health insurance plan you are eligible to contribute to health savings account , or HSA ...For 2021 this is defined as a plan with a deductible of at least $1400 for individual coverage and $2800 for family coverage .
If you qualify you can contribute as much as $3600 to your HSA in 2021 if you have single coverage or up to $7200 if enrolled in a family health plan .
An HSA is perhaps the most tax advantage of all , contributions are deductible so , if you contribute the $7200 max for 2021 it will be completely dedico from your taxable income for the year .
Once in the account , money can be invested similar to a 401k and withdrawals to pay for qualified healthcare expenses will be 100% tax free providing a rare double tax advantage.
If you do not end needing the money to pay for healthcare you can simply lewve it in your HSA until retirement..after age 65 you can withdrawal money from any HSA for ANY reason ....
