Making the Most of Your Health Savings Account (HSA) Before Year-End

It's that time of the year again! As the calendar inches closer to its end, we want to remind you of the valuable tool at your disposal: your Health Savings Account (HSA). Unlike other health-related accounts, HSAs operate on a calendar year, not a plan year. This means the decisions you make regarding your HSA have a deadline—December 31st. To help you optimize your healthcare finances, here's a friendly reminder to make the best use of your HSA funds before the year concludes.

Maximize Your Contributions

For 2023, the IRS has set the HSA contribution limit at $3,850 for individuals and $7,750 for families. Additionally, if you're 55 or older, you have the option of making catch-up contributions. The easiest and most tax-efficient way to contribute is through payroll deduction. Pre-tax contributions not only reduce your taxable income but also ensure that you're making the most of your HSA benefits. If you're contributing post-tax, make sure to inform your accountant so they can adjust it accordingly.

The Freedom of HSA

One of the biggest advantages of an HSA is its flexibility. If there's a medical expense your insurance doesn't cover, you can dip into your HSA funds to pay for it, as long as it's a qualified healthcare expense. From prescriptions to medical procedures, dental procedures and eyeglasses, your HSA can be a lifeline when unexpected healthcare costs arise.

What sets HSAs apart is their rollover feature. Unlike other accounts, your HSA balance rolls over year after year. This means the money you save today will be there for you when you need it most in the future. It's a proactive way to prepare for medical expenses and take charge of your financial health.

Don't let the year slip away without maximizing the benefits of your HSA. Contribute up to the IRS limits, enjoy the tax advantages, and rest easy knowing you have a safety net for your healthcare needs. As you plan your year-end finances, make sure your HSA is on your checklist. Your future self will thank you for the peace of mind and financial security your HSA provides. To learn more about maximizing your HSA benefits, reach out to an agent at Diversified.

DII is looking out for you and your benefits. Our team of experts can work with you to understand the best ways to maximize your HSA and other benefits before the year ends. Please contact your DII representative for more information. #December #Benefits #HSA