HSA Tax Advantages
A health savings account is a unique and valuable method for saving both federal and state taxes in Arizona.
HSAs are triple tax advantaged:
1st: Contributions to your health savings account are tax deductible.
2nd: Dollars in your health savings account earn interest tax-deferred and roll over from year to year until you decide to use them.
3rd: Withdrawals from your health savings account are tax-free as long as you use them for qualified medical expenses, as defined by the IRS.
You can contribute to your health savings account until you turn 65, as long as you're covered by a qualified high deductible health plan. When you turn 65, you can continue to spend your HSA dollars tax-free for qualified medical expenses. After you're 65, you can also spend HSA dollars for non-medical expenses without penalty; you'll just pay current income taxes on dollars spent for non-medical expenses.
CHECK OUT AN EXAMPLE
If you want to talk through your unique situation, please contact us.