Health savings accounts are powerful financial products that can help your clients cover current health care costs, save for future health care expenses and function as investment vehicles, so it's important for you to discuss them with your clients.
One important consideration is that a client who wants to contribute to an HSA needs to enroll in a high-deductible health plan.
Another important consideration is that there are limits to how much an account holder can contribute each year.
If your clients contribute too much, they could face tax penalties.
- In 2024, an individual under 55 can contribute up to $4,150.
- A family can contribute up to $8,300.
- An individual who is 55 or older can make an additional contribution of up to $1,000 per year.
So, how do your clients know if they're on track to meet their contribution goals?
If they do contribute too much, what can they do to mitigate the tax implications?
Enter technology.
A digital tool can help your clients see how well they're meeting their contribution goals and help them avoid exceeding the contribution limits.