8/22/2023 0 Comments Hsa eligible items 2021![]() Or you switched jobs and they don’t offer an HSA-eligible health plan. Perhaps you changed health insurance plans and you’re no longer HSA-eligible. If You’re No Longer Eligible for Contributions in 2023 Consider how nice it’ll be to see that money grow by the time you’re ready to retire…or when you need it for an unforeseen medical expense.Īnd always remember: time is one of your best advantages to investing, so it’s smart to think of contributing to your HSA as part of your overall retirement strategy. But! If you do have some extra cash, say, from that side-hustle, or maybe your rich aunt gave you a nice chunk of change for your birthday, think about socking those dollars away instead of spending them on a weekend getaway, or that new TV you’ve been eyeing. Well, sometimes circumstances get in the way, and that cash needs to work for you in the immediate. So why not contribute as much as you can and max out your account out each year? The whole point of an HSA is to make your hard-earned dollars work for you, as well as to help you save on medical costs (duh). Well, since your HSA is tax-free and any contribution you make to it (except direct, pre-tax paycheck deductions) is tax-deductible, making a contribution before the tax deadline helps you maximize your tax benefits, which is to say: you’re paying less in overall taxes. Now… let’s say you added in a side hustle in 2022 and it did really well, which also means you’ll need to pay more in taxes. Always check with the IRS for the specific year’s date. Contributions are based on tax year so you usually have until April 18th to contribute towards 2022. The contribution limits for 2022 are $3,650 for individuals and $7,300 for a family. As in its epic triple-tax-advantage: withdrawals for qualified medical expenses are tax-free, contributions to your HSA lower your taxable income, and any interest you earn in your account grows tax-free. However, contributing to the previous year has some specific perks…Ī major reason to have an HSA is for its incredible tax benefits. No matter how you slice it, whether you’re contributing to your HSA for this year or last, you’re taking the right step with your finances. No lie! This hack is like how retirement accounts work in that you can contribute towards 2022 for tax purposes, e ven though we’re well into 2023. When it comes to health savings account (HSA) contributions… there’s quite a bit to talk about! Although it may sound strange, putting money from this year toward your HSA contribution limit from last year can seriously benefit your wallet. Dependent Care FSAs are not Health Care FSAs for your dependents.Have some extra money and thinking about putting it towards your health savings account (HSA) contributions in 2023? Not so fast! Here’s why.
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