The IRS has released the 2022 contribution limits for health savings accounts (HSAs). An HSA is a tax-advantaged account that’s paired with a qualified high-deductible health plan.
An HSA offers several valuable tax benefits:
- You may be able to make pre-tax contributions via payroll deduction through your employer, reducing your current income tax.
- If you make contributions on your own using after-tax dollars, they’re deductible from your federal income tax (and perhaps from your state income tax) whether you itemize or not.
- Contributions to your HSA, and any interest or earnings, grow tax deferred.
- Contributions and any earnings you withdraw will be tax-free if used to pay qualified medical expenses.
Here are the key tax numbers for 2021 and 2022:
Health Savings Accounts | Annual Contribution Limits
High-Deductible Health Plan Deductibles
If you have questions about your HSA, or to discuss whether an HSA would be a useful part of your financial plan, contact your financial advisor today.
Matthew A Treskovich | CFA, CPA/PFS, CITP, CMA, CFP®, AEP®, MBA, CLU, ChFC
Chief Investment Officer