Consumer Products
The Future of Healthcare: How HSAs Fit into Your Financial Planning with PSB
December 7, 2023
As healthcare costs continue to rise, it’s more important than ever to have a plan for paying for your medical expenses. That’s where a Health Savings Account (HSA) can come in. An HSA is a great way to save for your medical expenses and protect your financial future. With an HSA, you can save money on taxes, grow your savings, and have peace of mind knowing that you’re prepared for unexpected medical bills.
Keep reading to learn more about the following:
- Contribution Limits
- Catch-up Contribution Limits
- Qualified Medical Expenses
What is an HSA?
An HSA is a specialized savings account that works hand in hand with your employer-sponsored high deductible health insurance plan (HDHP). This allows you to save money for your medical expenses tax-free.
The 2024 HSA Contribution Limits are:
- Individuals: $4,150
- Families: $8,300
- Catch-Up Contributions (age 55 or older): $1,000
How Do HSAs Work?
With an HSA, you can contribute pre-tax dollars to your account. This means that the money you contribute will come out of your paycheck before taxes are taken out. This can save you a significant amount of money on taxes, especially if you’re in a high tax bracket.
Your HSA funds can then be used to pay for qualified medical expenses, such as deductibles, copayments, and coinsurance. You can also use your HSA funds to pay for prescription drugs, vision care, and dental care.
Benefits of HSAs
There are many benefits to having an HSA, including:
Tax Savings: Your HSA contributions are tax-deductible, and your earnings grow tax-free.
Flexibility: You can use your HSA funds to pay for a wide variety of qualified medical expenses.
Portability: Your HSA is yours to keep, even if you change jobs or health insurance plans.
Investment Potential: You can invest your HSA funds to grow your savings over time.
Qualified Medical Expenses
There are a variety of qualified medical expenses that you can pay for with your HSA funds. Some common qualified medical expenses include:
- Deductibles
- Copayments
- Coinsurance
- Prescription drugs
- Vision care
- Dental care
For a complete list of qualified medical expenses, please refer to IRS Publication 969.
How PSB Can Help
PSB offers a variety of HSAs to help you save on your medical expenses. Our HSAs are easy to open and manage, and they offer a variety of features and benefits, such as:
- No minimum balance
- Online Banking
- FREE Debit Card
- Interest bearing
- Unlimited transactions
- Put money aside for those unexpected medical expenses.
An HSA is a great way to save for your medical expenses and protect your financial future. With an HSA, you can save money on taxes, grow your savings, and have peace of mind knowing that you’re prepared for unexpected medical bills.
Call us today and speak with one of our dedicated representatives to learn more and discuss how an HSA can benefit you. Open an HSA at PSB today and start saving for your health.