Health Savings Accounts (HSAs)
HSAs and Your Wellness
- HSAs can guarantee every family a 100% tax deduction for up to $5,650 per year of family wellness expenses—merely by paying through an HSA.
- HSAs allow patients to save money on sickness care tomorrow by investing today in wellness and preventative care.
- HSAs allow patients to convert unused sickness care health insurance premiums into HSA contributions that can be used for tax-free wellness expenses.
- The rules for HSA-qualified health insurance coverage allow employers and insurance carriers to still offer "first dollar" (i.e., below the deductible) coverage for preventative or wellness care.
- HSAs allow patients to build a health savings nest egg for their future wellness care, sickness care, and retirement.
How Much Can You Save With an HSA?
| Begin at Age | Annual Contribution |
Total Contribution |
8% Annual Growth |
Balance at Age 65 |
| 25 (40 years) | $5,250 | $210,000 | $1,384,327 | $1,594,327 |
| 35 (30 years) | $5,250 | $157,500 | $523,138 | $680,638 |
| 45 (20 years) | $5,250 | $105,000 | $164,001 | $269,001 |
| 55 (10 years) | $5,250 | $52,500 | $31,050 | $83,550 |
[Source: The New Health Insurance Solution, page 98.]
$$$ TIP:
- Just as with FSAs, employers can save 7.53% in employer FICA + FUTA wage taxes by allowing employees to set aside pretax wages for contributions to their HSA. Even if your employer doesn't offer health benefits, point out how, for very little extra paperwork, he can save 7.53% by allowing employee HSA contributions.