HSAs Make Health Care More Affordable
Kiplinger's Personal Finance|July 2022
Tax-advantaged health savings accounts allow you to save for a broad range of short-term and long-term medical expenses.
HSAs Make Health Care More Affordable

A HEALTH SAVINGS ACCOUNT is a tax-advantaged account designed to help cover out-of-pocket health care expenses. If you're the account holder, your spouse and dependents may also use the HSA, even if they're not covered by your medical plan. In 2022, you can contribute up to $3,650 if you have individual health insurance or up to $7,300 for family coverage. If you'll be 55 or older at the end of the year, you can put in an extra $1,000 in "catch up" contributions.

More than 80% of large employers currently offer an HSA to their employees, according to a recent survey by benefits consultant Willis Towers Watson, but not everyone is eligible to contribute to an HSA. In order to participate, your health insurance plan must offer a high-deductible plan. Typically, the monthly premiums for a high-deductible plan are lower, but you'll pay more out of pocket before insurance coverage kicks in. For 2022, the health plan must have a deductible of at least $1,400 for self-only coverage or $2,800 for family coverage.

The health plan must also have a limit on out-of-pocket medical expenses that you are required to pay. Out-of-pocket expenses include deductibles, co-payments and other amounts, but they do not include premiums. For 2022, the out-of-pocket limit for self-only coverage is $7,050; it's $14,100 for family coverage. According to the IRS, only deductibles and expenses for services within the health plan's network should be used to determine whether the limit applies.

The benefits. The tax advantages of HSAs are threefold: You can contribute to them on a pretax basis, your savings will grow over time tax-free, and withdrawals are tax-free as long as they are used to cover qualified medical expenses.

This story is from the July 2022 edition of Kiplinger's Personal Finance.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.

This story is from the July 2022 edition of Kiplinger's Personal Finance.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.

MORE STORIES FROM KIPLINGER'S PERSONAL FINANCEView All
A SOLID YEAR FOR THE KIPLINGER 25
Kiplinger's Personal Finance

A SOLID YEAR FOR THE KIPLINGER 25

All but one of our favorite actively managed, no-load mutual funds gained ground as markets recovered.

time-read
10+ mins  |
May 2024
YOUR VACATION HOME COULD PROVIDE TAX-FREE INCOME
Kiplinger's Personal Finance

YOUR VACATION HOME COULD PROVIDE TAX-FREE INCOME

If you plan to rent out your vacation home, it's important to understand how your proceeds will be taxed.

time-read
3 mins  |
May 2024
IT'S NOT YOUR IMAGINATION: YOUR CEREAL BOX IS SHRINKING
Kiplinger's Personal Finance

IT'S NOT YOUR IMAGINATION: YOUR CEREAL BOX IS SHRINKING

To avoid raising prices, some manufacturers are reducing the size of common grocery items. Here’s how to fight back.

time-read
2 mins  |
May 2024
SHOULD YOU WORRY ABOUT BEING LAID OFF? IT DEPENDS ON YOUR INDUSTRY
Kiplinger's Personal Finance

SHOULD YOU WORRY ABOUT BEING LAID OFF? IT DEPENDS ON YOUR INDUSTRY

Downsizing has hit certain sectors. But cutbacks may be slowing, and some companies are expanding.

time-read
4 mins  |
May 2024
How identity thieves are exploiting your trust
Kiplinger's Personal Finance

How identity thieves are exploiting your trust

Con artists themselves are disguising as well-known brands to steal your money and personal information.

time-read
3 mins  |
February 2024
CUT THE COST OF YOUR WIRELESS BILL
Kiplinger's Personal Finance

CUT THE COST OF YOUR WIRELESS BILL

AT&T, T-Mobile and Verizon dominate the market, but smaller outfits offer similar network coverage at lower prices.

time-read
10 mins  |
February 2024
MAKING HOME ENERGY MORE AFFORDABLE
Kiplinger's Personal Finance

MAKING HOME ENERGY MORE AFFORDABLE

Households in need can get energy-efficiency upgrades, help with utility bills and more from this nonprofit.

time-read
2 mins  |
February 2024
A HEAD START FOR SAVERS
Kiplinger's Personal Finance

A HEAD START FOR SAVERS

The Saver's Credit is designed to help low- and middleincome taxpayers contribute to a retirement account.

time-read
2 mins  |
February 2024
Say I Love You With a Money Date
Kiplinger's Personal Finance

Say I Love You With a Money Date

To nurture a lasting bond with your partner, meet regularly to talk about money.

time-read
2 mins  |
February 2024
Plan for Your Own Elder Care
Kiplinger's Personal Finance

Plan for Your Own Elder Care

AFTER I wrote a series of columns in 2022 about elder care planning for family members, I received a number of responses like this one: “What about married couples who have no children or whose family members don’t live nearby?” wrote one reader. “Or a single individual with no close relatives? How should these people plan for their own elder care?”

time-read
2 mins  |
February 2024