Avoid These Key Health Savings Account Mistakes in 2024
Saturday, 2 March 2024, 10:18
Avoid These 3 Health Savings Account (HSA) Mistakes in 2024 for Maximum Benefits
Don't do something you'll kick yourself for later. There are different savings accounts you might have access to that offer different tax benefits. But there's perhaps no single account that offers more of those than HSAs, or health savings accounts.
1. Not realizing you're eligible
- Your health insurance plan must be compatible with an HSA
- Review your health plan to determine eligibility based on specific guidelines for deductible and out-of-pocket maximum
- Start allocating money to your HSA promptly if your plan meets the requirements
2. Spending your balance on near-term bills when you can afford to pay out of pocket
- Avoid withdrawing funds for every healthcare bill if you can cover expenses out of pocket
- Leave more money in your account to benefit from tax-free gains in the long term
- Prepare for higher healthcare costs in retirement by saving as much as possible
3. Forgetting about catch-up contributions
- Make catch-up contributions to your HSA to shield more money from taxes and grow investments tax-free
- Contributions limit for self-only and family coverage, along with the age eligibility for catch-up contributions
- Maximize the benefits of HSAs by avoiding key mistakes and securing a strong financial future
HSAs really are a wonderful savings tool. Try your best to avoid these mistakes so you can reap the maximum benefits.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.