I’ve got my taxes on my mind and my puppy on my box of taxes.

October 10, 2016

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With health insurance premiums on the rise, and deductibles and max out of pockets increasing as well, some of you may be interested in a health savings account (HSA) eligible plan for 2017.  They are typically the least expensive insurance options offered. Of course, keeping your premium down means higher out of pocket costs.  That’s where an HSA can come in handy.

To be an eligible individual and qualify for an HSA, you must meet the following requirements.

-You must be covered under a high deductible health plan (HDHP).

-You have no other health coverage except what is permitted.

-You are not enrolled in Medicare.

-You cannot be claimed as a dependent on someone else’s tax return.

HSA plans must have a minimum of:

-$1300 individual deductible/$6550 max out of pocket

-$2600 family deductible/$13,100 max out of pocket

An HSA can help defray these costs and provide a tax advantage*.  They are also not the “use it or lose it” plans from years past.  You can contribute to your account every year and you retain what you contribute less your payments for qualified medical expenses.

2017 HSA contribution limits are:

-$3400 individual

-$6750 family

-Members 55 or older can make a catch-up contribution of $1000.

 

 

*Those under age 65 (unless totally and permanently disabled) who use HSA funds for non-qualified medical expenses face a penalty of 20 percent of the funds used for such expenses. Funds spent for non-qualified purposes are also subject to income tax.