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Robert A. Imparato, Jr CFP®
CERTIFIED FINANCIAL PLANNER™ professional
Craig A. Hyldahl CFP®
CERTIFIED FINANCIAL PLANNER™ professional
R.I.C.H. Planning Group, LLC
105 Fieldcrest Avenue, Suite #507
Edison, NJ 08837
Robert: 732-326-5240
Craig: 732-326-5240
Fax: 732-326-5331
Robert: robert@richplanninggroup.com
Craig: craig@richplanninggroup.com
Website: www.richplanninggroup.com
March/April 2024
HSA Contributions Offer Tax Benefits
If you’re looking for a way to lower your 2023 income taxes, your health plan might be able to help. When you’re covered under a high deductible health plan (HDHP), any contributions you make to a health savings account (HSA) by the April 15, 2024, tax filing deadline can be deducted on your 2023 tax return.
Triple Tax Benefits
Health savings accounts offer a tax-advantaged way to pay current and future out-of-pocket medical expenses. HSA contributions are made pretax. Money in the account is invested based on your preferences and potentially grows tax-free. Withdrawals to pay qualified medical expenses are also tax-free.Nonqualified withdrawals incur a tax penalty before age 65. After reaching 65, you can take penalty-free withdrawals for any reason but must pay income tax on any nonqualified amounts.
HSA Contribution Limits
For 2023, contribution limits are $3,850 for individuals and $7,750 for families. Those limits increase to $4,150 and $8,300, respectively, for 2024. Individuals 55 and older can contribute an additional $1,000. Limits include employer contributions, if any. You must participate in a high-deductible health plan to be eligible for an HSA.Let It Ride
There is no time limit on using the money in your HSA, so you don’t have to request reimbursement for medical expenses in the year they occur. If you save your receipts, you can submit them for a lump-sum distribution in the future.Save for Future Care
With long-term care costs rising every year, a lengthy stay in a nursing home may become unaffordable. By contributing the maximum amount to an HSA and allowing the account to grow throughout your working years, you could accumulate substantial assets to help pay for care should you need it in the future.Name a Beneficiary
As with 401(k) and other investment accounts, you designate a beneficiary to receive any funds remaining in your HSA when you die. If you name your spouse, the account remains an HSA for his/her benefit. If you name someone other than a spouse, the HSA ends with your death. The account’s fair market value then becomes taxable income to the beneficiary, less qualified medical expenses paid on your behalf.Talk to your financial and tax professionals for more detailed information.
GE-6175675.1(12/23)(Exp.12/25)
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Securities offered through Equitable Advisors, LLC (NY,NY (212) 314-4600), member FINRA,SIPC (Equitable Financial Advisors in MI & TN). Investment advisory products and services offered through Equitable Advisors, LLC, an SEC-registered investment advisor. Annuity and insurance products offered through Equitable Network, LLC, which conducts business in California as Equitable Network Insurance Agency of California, LLC; in Utah as Equitable Network Insurance Agency of Utah, LLC; and in PR as Equitable Network of Puerto Rico, Inc. Equitable Advisors and Equitable Network are affiliated companies and do not provide tax or legal advice.
R.I.C.H. Planning Group, LLC is not owned or operated by Equitable Advisors or Equitable Network. Equitable Advisors and Equitable Network are brand names for Equitable Advisors, LLC and Equitable Network, LLC, respectively.
GE-4833845.1 (7/22)(Exp. 7/24)
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