by people who have them, even though thousands of dollars can be invested every year. And in 2025, you can contribute more, as the IRS haslike X-rays or medication, the funds can be invested and grow tax-free, just like a 401 or individual retirement account.
To qualify for an HSA, you need to be enrolled in a high-deductible health plan. The IRS defines"high-deductible" as at least $1,600 for individuals and $3,200 for family plans in 2024. In 2025, the thresholds are $1,650 and $3,300, respectively. Crucially, these funds can be invested in a range of options that can include exchange-traded funds, bonds and stocks.. For family plans, the limits are $8,300 in 2024 and $8,550 in 2025. Those ages 55 and older can make an additional"catch-up" contribution of $1,000 for both single and family plans in 2024 and 2025, according to the IRS., such as lab fees and nursing services, are not taxed. Withdrawals for non-qualified expenses before age 65 incur income tax and a 20% penalty.
"I'm a big fan of HSAs," says Smith, citing their"rare triple-tax benefits" specific to qualified medical expenses.HSA earnings could go a long way in covering your medical costs in retirement, which are estimated to be $315,000 after age 65,"HSAs should be viewed as an additional retirement account," says Smith."After all, health-care costs could very well be nearly as high as our living expenses in retirement.
Even if you don't need the earnings for medical care later in life, you'd only be charged income tax on withdrawals for non-qualified expenses after age 65.. We'll teach you how to speak clearly and confidently, calm your nerves, what to say and not say, and body language techniques to make a great first impression. Preregister today and use code EARLYBIRD for an introductory discount of 30% off through July 10, 2024.
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