Tax Advantages of Health Savings Account

Tax Advantages of Health Savings Account

Health Savings Account is available to taxpayers who are enrolled in a medical plan which has a deductible of at least $1,250 (self) and $2,500 (self & family). Deposits to HSA are made on a pre-tax basis and the withdrawals incur no tax if utilized for qualified medical expenses. The best part of HSA is that the un-utilized balances earn interest and can be rolled over. Annual contribution is subject to $3,250 (single) and $6,450 (family). The sum contributed to HSA is reduced from your gross taxable income and your tax bill goes down.

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