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Health savings accounts

In 2017, the annual HSA contribution limit for individuals is $3,400 and $6,750 for families.

Currently, HSA's are only available to people whose health insurance plans have high deductibles, $1,300 for individual coverage and $2,600 for families.

HSA's offer a triple tax break.  Contributions are tax-deductible, assets grow tax free, and distributions are tax-free if used for qualified medical expenses.  Once you turn 65, you can use HSA funds for any purpose penalty free, but if used for nonmedical expenses, they are subject to income tax.

Posted on Wednesday, March 22 by Registered CommenterWise Owl | Comments Off