Do you have a high deductible health plan (HDHP)? If so, you likely have a higher deductible and a health savings account (HSA). You may have signed up and forgot about it. If so, it’s time to revisit it, because an HSA is a great tool for saving and paying for healthcare expenses. Putting money in your HSA can help you cover healthcare costs until you reach the deductible on your HDHP, and you don’t pay taxes on the money you put in or take out of your HSA. To understand how to use your HSA to save money on healthcare, see our guide below.
By taking the steps above, you’re making the most of your HSA and all of its benefits. In addition to potential employer benefits and tax deductions, you can have peace of mind knowing you have money set aside for healthcare costs. We mentioned IRS Publication 502 and IRS Form 8889 for knowing the full list of expenses covered and preparing for tax season. Here are those links for your reference: IRS Publication 502; IRS Form 8889.
Disclaimer: Commerce Bank does not provide tax advice. Please consult your tax professional.
