Maximize your HSA tax savings.
Contributions to your HSA are free from Federal, State* and FICA taxes; so, be sure to contribute the maximum allowable amount each year. The IRS maximum allowable amounts for 2012 are:
- $3,100 for individual coverage
- $6,250 for family coverage
If you are 55 or older, you can contribute an extra $1,000 every year. You can use your Health Savings Account (HSA) to pay for a wide range of eligible medical expenses for yourself, your spouse or tax dependents. Funds used to pay for eligible medical expenses are always tax-free and you can continue to use your HSA funds even if you’re not covered by an HSA-compatible plan.
Examples of Eligible Medical Expenses**
- Chiropractor
- Doctor’s fees
- Dental treatments (including X-rays, braces,
- dentures, illings, oral surgery)
- Dermatologist
- Hearing aids and batteries
- Prescription drugs and medicines
- Telephone or TV equipment to assist the
- hearing or vision impaired
- Therapy or counseling
- Vision care (including eyeglasses,
- contact lenses, LASIK surgery)
