As Health Insurance Rises, Is an HSA in Your Future?

For years, Americans have been schooled on the benefits of saving: for retirement, for a child's higher education, and even for a rainy day. It's time to add another item to that list: health care.

As insurance premiums and deductibles rise, the need to save specifically for medical costs becomes greater. In 2003, the government created a tax-deductible savings vehicle for medical expenses, called a health savings account (HSA). HSAs are rapidly finding favor with the self-employed and small-business owners.

Anyone can open an HSA, provided they:

HSA Benefits Today ...

HSAs allow account holders to lower their health insurance premiums by purchasing higher-deductible plans. You can tap into your HSA to pay for any "qualified medical expense," including doctor's visits, prescriptions, dental and vision care, and over-the-counter drugs.

All contributions to an HSA are tax deductible and there are no income or phase-out restrictions. The maximums are adjusted for inflation annually. For 2015, singles can contribute up to $3,350 and families can sock away $6,650. The out-of-pocket limits are $6,450 for singles and $12,900 for families.

Additional benefits:

 ... And Tomorrow

Your tax or financial professional can help you determine if an HSA is right for you.

Content is the proprietary work product of Wealth Management Systems Inc. and is offered by Lockton Retirement Services solely for educational purposes.

Because of the possibility of human or mechanical error by Wealth Management Systems Inc. or its sources, neither Wealth Management Systems Inc. nor its sources guarantees the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. In no event shall Wealth Management Systems Inc. be liable for any indirect, special or consequential damages in connection with subscriber's or others' use of the content.

© 2015 Wealth Management Systems Inc. All rights reserved.