Health Savings Account (HSA)
· The account owner can fund the account with pre-tax dollars. Any after-tax contributions that you make to your HSA are tax deductible.
· Money from the account can be used for "qualified" medical expenses as well as deductibles, co-insurance, prescriptions, vision and dental care.
· Funds roll over and accumulate year after year if not spent, earning tax-free interest. There is no “use it or lose it.”
· To open an HSA, you must be on an actual individual or group HSA plan. Just having a high-deductible plan does not qualify you to open an HSA account. HSA plans can be individual plans or group medical plans.
· After age 65, funds can be withdrawn for any purpose without penalty.
For 2017, the maximum contribution limits are:
If you are over 55, you may add an additional
“catch-up” = $1,000