Our firm has always been a fan of HSAs (Health Savings Accounts). And thanks to recent tax law changes, HSAs may be more valuable than ever beginning in 2013. Contributions to your HSA are deductible on page one of your return and help reduce your adjusted gross income. That is important because a number of tax deductions and credits are phased-out and/or reduced based on your adjusted gross income. By making a contribution to your HSA, you will reduce your adjusted gross income and may preserve other important tax breaks.
The recently released contribution limits for 2014 are as follows:
Individual with self-only coverage under a high-deductible plan $3,300
Individual with family coverage under a high-deductible plan $6,550
If you are age 55 and above, you can add $1,000 to either of the amounts above.
For 2014, a “high deductible health plan” is defined as a health plan with an annual deductible that is not less than $1,250 for self-only coverage or $2,500 for family coverage.
Please contact our office if you have any questions regarding Health Savings Accounts.
L. Daniel Osborne, CPA