Tax Season Tip: Health Savings Accounts Offer Way to Save on Taxes and Health Care
INDIANAPOLIS (Feb. 21, 2013) For Americans facing increased taxes and rising health care costs, the tax advantages and cost-effectiveness of a health savings account (HSA) may be particularly appealing this year.
HSAs pair a tax-advantaged savings account with a qualified high-deductible health insurance plan, which typically costs less in monthly premiums when compared to more traditional health insurance. HSA savings are deposited into a tax-deferred account and can be withdrawn tax-free when used for qualified medical expenses, which include health insurance deductibles as well as dental, vision and other types of care often not covered by health insurance.
For 2012 tax purposes, deductible contribution limits are $3,100 for individuals and $6,250 for families. HSA holders 55 and older can contribute and deduct an additional $1,000. HSA contributions in 2013 are tax deductible up to $3,250 for individuals and up to $6,450 for families. Consumers with HSAs have until April 15 to contribute and maximize their 2012 deductions up to the legal limit.
"HSAs enable consumers to save on taxes and health costs today while saving for retirement health care," said Patrick Carr, president of UnitedHealthcare's Golden Rule Insurance Company.
Carr points to a recent study by Fidelity Benefits Consulting which estimates that a 65-year-old couple who retired in 2012 will need $240,000 just to cover their medical costs in retirement.
Insurance industry trade group America's Health Insurance Plans (AHIP) reported in 2012 that more than 13.5 million Americans with individual or employer group coverage had an HSA-qualified plan, an increase of 18 percent from 2011.
To learn more about HSAs, visit HSAcenter.com, an interactive online resource developed by Golden Rule to educate consumers about the advantages that HSAs offer. Golden Rule's expertise goes back more than 20 years when the company introduced the first medical savings account (MSA), predecessor to the HSA.
A leading provider of health insurance for individuals and families for more than 65 years, Golden Rule has been a UnitedHealthcare company since 2003. UnitedHealthcare's personal health and dental plans are offered in 42 states and the District of Columbia, and marketed under the UnitedHealthOne brand. For more information, consumers can call 1-800-444-8990, visit our website or contact a local independent insurance broker who offers UnitedHealthOne health and dental plans