Health Savings Account (HSA) is a type of medical savings account in United States that has relation with high-deductible health insurance plans (HDHPs). The definition of HDHPs appears in the records of US Government, but these are high-end health plans that have been designed for benefits of federal taxpayers. Health Savings Account has been structured in a way that federal taxpayers can enjoy benefits of tax saving on their personal income for every fiscal year by making deposits in this account and simultaneously make tax-free withdrawals for medical reimbursements. For these reasons, this account caries a high value for tax paying population of United States.
HSA qualifying limits
HSA is easy to open on many designated places. You can know more of this account on livelyme and here you can also open and maintain your account. You can’t make unlimited deposit in this account because United States Internal Revenue Service (IRS) has defined maximum deposit in HAS and also declared minimum deductible in high-deductible health insurance plan (HDHP) for taxpayers based on the income of the individual and family members. The contribution and min-max limits are subject to change in subsequent fiscal years. The max limit set by IRS is for out-of-pocket contribution and the min limit is for dedcutibles.
HSA is better compared to other accounts
HSA has many benefits and had dual benefits of tax savings and health insurance reimbursements for self and family, though these benefits can be enjoyed until you celebrate your 65th birthday, after which you need to care about withdrawals from this account because there is risk of penalty in certain type of withdrawals. You can check for details benefits and drawbacks of maintaining this account on the website of livelyme which will also be your guide for this account. Overall, Health Savings Account has a worth more than your bank’s checking account and is even better compared to contributing in 401(k) Plan for Tax Saving and Income.