Health savings accounts, or HSAs, are savings plans that allow people with high-deductible health insurance to put money in a tax-preferred account to save for medical expenses, notes the United States Department of the Treasury. Anyone who has a high-deductible plan can establish a health-savings account.Continue Reading
As of 2015, adults with plans featuring deductibles of $1,300 for individuals or $2,600 for families can contribute to a health savings account. For eligibility to be ensured, the policy must make everything subject to the same deductible; for example, the policy cannot have a separate deductible for prescriptions or preventative care, notes Kiplinger.
The maximum contribution to an HSA for individuals is $3,350 or $6,650 for families, reports Kiplinger. If someone in the home is age 55 or older, there's an additional $1,000 on the contribution cap. Contributions are made pretax when made through an employer, and they are tax-deductible for self-employed taxpayers. The money in the HSA can be used for medical expenses only. Contributions for the tax year must be made by April 15 the following year. HSAs are offered by many different banks and firms; taxpayers can open their accounts anywhere as long as their health insurance policies make them eligible for the account.Learn more about Health Insurance