Want to know a secret? Of course, you do!
If you have a high deductible plan, you should consider getting a health savings account (HSA), and here’s why. It’s a great way to save money to pay for future medical bills on a pre-tax basis, and if you don’t use the money, it just rolls over without any penalty. If used sparingly, you could even potentially save a significant amount to pay for retirement expenses. What’s not to love?
In addition to being a smart choice for paying for medical expenses, it can also reduce your taxes. (Yes, you read that right. It can reduce your taxes. Bet you didn’t see that coming.)
Get an HSA-qualified plan in place by November 30th, and you can make a 2020 contribution of up to $7,100 for a family or $3,550 for an individual. This is a tax-deductible contribution, so it must be made no later than April 15th of next year. Someone in a 32% tax bracket could save $2,272 on this April’s tax bill!
Note that the plan must be effective by December 1st, so try to apply no later than mid-November just to be sure.
HSA for America now offers an HSA-qualified association plan with very attractive rates.
Mpowering Benefits offers an HSA-eligible partially self-directed healthshare plan, combining the best of a health care sharing plan with an HSA.
As healthshare programs, these HSA-eligible healthshare plans have contributions, not premiums, and cost typically around half or less than that of an unsubsidized health insurance policy. The monthly contribution start as low as $190 a month. Can you beat that?
Are you interested and want to hear more? Call your trusted Personal Benefits Manager for more information or how to apply. To see quotes on our most popular HSA plan from Mpowering Benefits, click here.
This post was originally published in October 2019, and has been updated with 2020 information.