Are HSA account contributions tax deductible? Or only the amounts spent out of HSA accounts for medical expenses?

Asked by Bill

1 Answer

Log in or sign up with email
By submitting you agree to our Terms of Service
Answered by Kim Miller, CFP®PRO+ in Redmond, WA
Hi -

Yes, contributions to a Health Savings Account (HSA) are tax deductible in the year the contribution is made. Keep in mind that you must first be covered by an eligible health insurance plan - check with your health insurance provider. The annual contribution limit to a HSA is $3,300 for an individual and $6,550 for a family. If you are 55 years old or older you can add an additional $1,000 to either of these limits. You employer may make a contribution - check with your benefits department. You can also make a one-time transfer from an IRA to an HSA account - the transfer is tax-free and a great way of getting money out of an IRA without paying any taxes. HSAs are a great tool - contributions are tax deductible and withdrawals are tax-free when used for health care. Good luck! | 11.20.14 @ 19:23
Comment
Log in or sign up with email
By submitting you agree to our Terms of Service
$commenter.renderDisplayableName() — {comment} | 12.06.16 @ 14:34
Log in or sign up with email
By submitting you agree to our Terms of Service
Free MoneyTips Membership!

Get FREE, full access to MoneyTips.com

Answered by

Kim Miller
Kim Miller, CFP®PRO+ in Redmond, WA

Related Questions