Since the Affordable Care Act (Obamacare) was enacted, Health Savings Accounts (HSAs) have become more popular than ever, particularly with small businesses.
This should come as no surprise.
The HSA has some great features including its exclusion from the Affordable Care Act 100-a-day penalty rules, tax-deductible contributions, tax deferred growth, and possible retirement benefits.
Want an update on what a tax-saving HSA can do for you?
Read my new article titled Tax Tips: Update on Health Savings Accounts (HSAs)!
Here’s just some of what you’ll learn when you
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- Deduct the health insurance cost. To enable the HSA, your health insurance must be a high-deductible health insurance policy. Sole proprietors, partners, and S corporation owners can qualify to deduct this high-deductible insurance on page 1 of Form 1040.
- Deduct the HSA contribution. For 2017, you can make a deductible HSA contribution of up to $3,400 if you have qualifying self-only coverage or up to $6,750 if you have qualifying family coverage (anything other than self-only coverage).
- Tax-deferred earnings. The monies accumulated in your HSA grow and compound tax deferred (even tax-free if you withdraw correctly).
- Tax-free withdrawals. Withdrawals from your HSA are tax-free when you use the monies to pay for qualified medical expenses.
- Retirement withdrawals. You can make your HSA work like a traditional IRA after reaching Medicare age.