Best kept tax saving secret 🤫 #short

[moneywithpriscilla]

👇This account will save you thousands in taxes!

🔥 A Health Savings Account (HSA)

HSAs are available to those who are covered under a High-Deductible Health Plan, which offers higher deductibles and lower premiums than a traditional insurance plan.

✅ You own your HSA, not your employer. This means that the funds roll over from year to year, allowing for long-term savings and investment growth. Some employers do contribute to employee HSAs, providing an additional source of funding so you can easily max out your account!

💡The 2024 HSA contribution limits are $4, 150 for individuals and $8, 300 for family coverage.

HSAs are triple-tax advantaged accounts meaning that:
1- Your contributions to the HSA are tax deductible because they are made pretax and thus lower your taxable income for the current year.

2- You can invest the money in your HSA and all interest, dividends, or capital gains earned on the contributions are tax-free.

3- You can withdraw funds from your HSA tax-free for qualified medical expenses.

💎 Plus, once you turn 65, you can withdraw funds from your HSA for non-qualified expenses without incurring any penalties. These withdrawals will be subject to regular income tax, which is similar to a traditional IRA. This will provide a lot of flexibility in your retirement!

Since Open Enrollment is going on right now, consider whether an HSA would be right for you.