Health Savings Account plans, high deductible health plans, have the added benefits of tax deductions. Unused balances can be carried over to following years, thus allowing you to save money tax free. Since an HSA allows you to purchase a high-deductible insurance plan with lower premiums, it an excellent way to save money on healthcare. Add to that the fact your contributions to the fund are tax free, you can enjoy considerable tax savings. Finally, since the interest is tax free and tax deferred, you can also use Health Savings Accounts to supplement retirement income.
For those with Health Savings Account Plans, please note the following contribution limits for 2010:
• For individual coverage, the maximum contribution is $3,050
• For family coverage, the maximum contribution is $6,150
• In addition to the maximum contribution amount, catch-up contributions
of $1,000 may be made by or on behalf of individuals age 55 or older and
younger than 65
If you have more than one HSA account, these limits are going to be applicable for all the accounts together.
