- Fully understand the benefits of your account – all contributions that you make to your HSA, up to the annual limit, are completely tax deductible (federally). If your employer makes any contributions to your account, they are excluded from your gross income. The money that is kept in your HSA will stay there indefinitely until you decide to use them. If you still have money in your account at the end of the year, it will rollover to the next year.
- Contribute the maximum amount – in 2015, you are able to contribute up to $3,350 a year for an individual, and $6,650 a year for a family. Reaching the maximum contribution amount can help to ensure that you have the money when you need it (additional $1,000 if over age 55).
- Know what expenses are eligible – the money that is in your HSA can be spent on any out of pocket medical expenses, including your deductible, co-payments, prescription drugs, and any bills that are not covered by your health insurance, such as dental and vision care.
- Keep your receipts – make sure to keep all of your receipts for anything that you purchase with your HSA. If your HSA ever gets audited, you will need to prove what you spent the funds on. If you do not want to keep the hard copy of the receipt, take a picture or scan them into your computer.
For all of your health insurance needs and to ensure that you have the coverage that you deserve, contact the insurance professionals at Sackett & Associates Insurance Services in Sonoma County, California.