There can be a lot of confusion surrounding HSA Tax planning. Here are a few things to keep in mind.
- An HSA does not have to be through an employer. An individual can open an HSA account
- You must be enrolled in a high deductible plan to contribute to an HSA
- When looking for an HSA provider, one should investigate more than one source to compare fees associated with the account, as well as investment options
- As there is still time to open an HSA for 2017 (contributions can be a lump sum) the limits for 2017 are $3,400 for single and $6,750 for family.
- At the age of 65, if you choose to go on Medicare, you can no longer contribute to an HSA account
- If you are on Medicare, and you have previously had an HSA account, you can use the funds to pay for your insurance, but again, you can no longer contribute to the HSA
- For 2018 the contributions are $3,450 for single and $6,900 for family.
- The catch up contribution for those age 55 and older are eligible for a $1,000 catch-up contribution.
Please contact us with questions.