A lot of people with HSA-qualified plan miss out on hundreds or even thousands of dollars in tax breaks, because they fail to fully fund their HSA.
Fort Collins, Colorado (PRWEB) April 13, 2013
Individuals with a Health Savings Account have until April 15, 2013 to deposit tax free dollars into their accounts for the 2012 tax year. Individuals may deposit up to $3,100 and couples can deposit $6,250 total into their account. Any deposited funds will be an “above the line” tax deduction for the 2012 tax season. Those who are 55 or older may contribute an extra $1,000.
This money allows for tax free spending on qualified medical expenses such as going to the doctor, purchasing prescription drugs, paying for dental care or eye exams, and paying other expenses toward a deductible.
"A lot of people with HSA-qualified plan miss out on hundreds or even thousands of dollars in tax breaks, because they fail to fully fund their HSA", says Wiley Long, president of HSA for America. "I urge everyone to fully fund their HSA if at all possible. Not only do you get an immediate tax break, but the money grows tax-deferred just like an IRA. And if you ever need the money to pay for a medical expense, you can withdraw it tax-free."
Some things to remember when filing:
Remember that over-the-counter drugs can no longer be bought with HSA money without a doctor's prescription. Insulin is an exception to that rule. A complete list of what an HSA covers can be found at http://HSAforAmerica.com/hsa-info.htm#tax2.
If the HSA is established but there is not enough money to reimburse this year’s medical expenses, withdrawals can be made in future years.
HSA holders are not required to withdraw money from the HSA at any certain time. Some people choose to leave the money in the HSA so it benefits from the tax-deferred growth, and instead withdraw it at a future date.
And, remember, HSA money can be used after retirement to pay for health care with tax-free dollars.
About HSA for America:
As the nation's leading independent HSA expert, HSA for America has earned a reputation for providing superior educational resources for individuals, families and small businesses. With its comprehensive website, the public can evaluate high-deductible health insurance plans that allow them to establish an HSA and comply with the health care reform mandate.
Guidelines for selecting an HSA administrator based on fees and investment options are readily available at http://www.HSAforAmerica.com/admins.htm. More topics to help consumers maximize their savings can be found at http://www.HSAforAmerica.com/The-HSA-for-America-Complete-Protection-Strategy.htm.
Consumers may access HSA for America’s instant quote engine and online applications or request individualized assistance. Confidential consultations regarding HSA plans and Health Reimbursement Arrangements may be arranged by calling 1-866-749-2039 from 9 AM through 11 PM Eastern.