Start Planning Now for 2021 HSA Changes

Start Planning Now for 2021 HSA Changes

(FinancialHealth.net) – In 2020, the lobbying group America’s Health Insurance Plan reported that roughly 22 million Americans had health savings accounts (HSAs). These are available to people who have high-deductible insurance plans, and they provide tax breaks to people who use them. Every year, the IRS tweaks how much a person can contribute to their account and what the requirements will be for those who want an HSA. Here’s what we know about 2021:

  • Americans who have family coverage under their health plan with a deductible of at least $2,800 will be able to contribute up to $7,200. The maximum out-of-pocket amount was capped at $14,400.
  • Individuals with self-only policies have to meet a minimum deductible of $1,400 and can contribute up to $3,600.
  • People who are age 55 or older can contribute an additional $1,000 each year, and their spouses can set aside an extra $1,000 in their own HSAs.

If you don’t have an HSA but have a qualifying health plan, you may want to consider getting one. The money you invest in the accounts will grow tax-free, and you’re not taxed when you take cash out to pay for your medical expenses. Additionally, your HSA will roll over every year, which makes it a great investment tool.

Check out the video below to learn more:

Keep in mind, different states have specific tax guidelines, so you’ll want to check how yours handles the accounts. If you’re unsure how to start an HSA, reach out to your financial adviser.

~Here’s to Your Financial Health!

Copyright 2020, FinancialHealth.net

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