Sign up for an H.S.A. First, determine how you use the money

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H.S.A.s can be used for a variety of health and medical expenses, including dental care. HSA Bank offers a summary of eligible and ineligible expenses on its website.

A full list is in I.R.S. Publication 502.

Here are some questions and answers about health insurance companies:

How much can I get to an H.S.A. contribute?

For 2020, individuals can contribute up to $ 3,550 and families up to $ 7,100. People aged 55 and over can contribute an additional $ 1,000. To sign up for an H.S.A. Next year, you must have a health insurance plan with a minimum deductible of $ 1,400 for one person and $ 2,800 for a family. If you are unsure whether your plan is suitable, contact your insurer.

This year, the limits are $ 3,500 for individuals and $ 7,000 for families. Contributions for 2019 can be paid until the submission date for the tax return in April.

What if I want to save for a while and then invest the money later?

A sensible approach for those who can afford it is to look into your H.S.A. Justin McCarthy, director and chief financial advisor at Mariner Wealth Advisors in New York, said that you should secure your deductible before you start your investment. This can help find a balance between meeting short-term medical needs and saving for future health care costs.

Do I have to leave my H.S.A. right now?

No. You can put the money in your H.S.A. grow, pay for healthcare from another account, and then reimburse H.S.A. anytime in the future, said Mr. Ramthun. Just make sure you save receipts – whether in an actual shoe box or in a digital version that many H.S.A. Vendors are now bidding. In this way, the I.R.S. If you ask for proof that the money has been spent on reimbursable expenses, you have documentation, Ramthun said. When saving paper receipts, be aware that the ink may fade. It is also advisable to make an online backup.