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Get the Facts: Medical Savings Accounts

As winter and the end of the year is right around the corner, your Arvada dentist wants you to know it’s time to start thinking about your HSA or FSA benefits. HSA, or health savings account, is a medical savings account that is tax-deferred. There’s no deadline for making a withdrawal and consumers can reimburse themselves in future years for current incurred medical costs. Contributions for medical expenses must be made by Dec. 31st of this year. For this year, the maximum amount of money you can contribute to your HSA account Isis $3,350 and the maximum for family coverage is $6,650.

Here are some great benefit to having a health savings account:
  • HSA’s can lower your tax bracket which means some people will actually pay 10% less in taxes by funding their account each year
  • HSA’s allow you to pay out-of-pocket costs tax free.
  • For non-healthcare purposes, money from your HSA account can be withdrawn early at a 20% penalty, rolled over in a retirement account, or be withdrawn at age 65 without penalty.
  • There is no lose it or use it rule, so you can keep your HSA money, invest it, or roll it over to another savings account. Even if you stop funding it, you still get to keep the money.
Other medical savings account include Flexible Spending Accounts (FSAs). If you fund an FSA, you can’t fund a HSA in the same year, however, you can always use the money from your HSA even if you can’t fund it that year. FSAs are set up through an employer plan and they allow you to set aside pre-tax dollars for certain health and dependent-care needs. However, FSAs have a certain amount that you can carry over from one year to the next. Whatever you don’t use by the end of your company’s benefits year will be forfeited.

Make the most of your HSA or FSA account by using it before the end of the year with your Arvada dentist. It’s important you don’t put off important procedures and to take care of your oral health. Make sure to make sure to give us a call today to find out how Complete Dental Care can help!