Make the Most of a Health Savings Account
It can help ease the pain of a high deductible on your 2015 health plan.
One of the biggest challenges in store for people as they start to use their health plans in 2015 will be dealing with high deductibles. Nearly one-third of employers are offering only high-deductible plans with no alternative, according to the National Business Group on Health, and people who buy insurance on their own are choosing high-deductible policies as a way to lower their ever-rising premiums. The average bronze plan on the state health insurance exchanges had a deductible of more than $4,300 in 2014, according to a study by Avalere Health.
It can be tough to adjust your family budget to cover a large deductible, but there is one benefit: A high deductible may make you eligible to contribute to a health savings account. An HSA gives you an attractive triple tax break. Your contributions are tax-deductible (or pretax through an employer’s plan), the money grows tax-deferred, and you can use it tax-free for medical expenses in any year. Many employers are pitching in, too.
You’ll benefit the most if you keep the money growing in the account for future medical expenses -- building up a tax-free stash of savings you can use anytime, even after retirement. To help you make the most of this valuable opportunity, we've updated our helpful FAQ about health savings accounts. Learn more.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
-
Stocks Chop as the Unemployment Rate Jumps: Stock Market TodayNovember job growth was stronger than expected, but sharp losses in October and a rising unemployment rate are worrying market participants.
-
Should You Renew Your CD?With rate cuts impacting earnings, we examine if now is a wise time to renew CDs.
-
7 Ways to Plan Now to Save on Medicare IRMAA Surcharges LaterUnderstand the critical two-year lookback period and why aggressive planning before you enroll in Medicare is the most effective way to minimize IRMAA.
-
Five Ways to Save on Vacation Rental PropertiesTravel Use these strategies to pay less for an apartment, condo or house when you travel.
-
How to Avoid Annoying Hotel Fees: Per Person, Parking and MoreTravel Here's how to avoid extra charges and make sure you don't get stuck paying for amenities that you don't use.
-
How to Appeal an Unexpected Medical Billhealth insurance You may receive a bill because your insurance company denied a claim—but that doesn’t mean you have to pay it.
-
Amazon Prime Fees Are Rising. Here’s How to Cancel Your Amazon Prime MembershipFeature Amazon Prime will soon cost $139 a year, $180 for those who pay monthly. If you’re a subscriber, maybe it’s time to rethink your relationship. Here’s a step-by-step guide to canceling Prime.
-
How to Haggle for Almost AnythingSmart Buying Learning how to haggle is an invaluable skill. These strategies will help you negotiate a better price for just about any product or service.
-
Disability Insurance Can Provide COVID CoverageCoronavirus and Your Money If you are concerned about long-term complications from COVID-19, consider disability insurance coverage.
-
21 Things You Can't Return to Amazon — Either Online or In-StoreDid you know there are things you can't return to Amazon? Before adding these 21 items to your cart, be sure to read Amazon's return policy first.
-
How to Avoid a Charity Scampersonal finance Scammers never quit, even when you're trying to be altruistic. But you can avoid getting duped if you do your homework.
