3. Utilize tax advantages
Don’t forget to report your HSA contributions on your tax return. Say you make $65,000 per year. That means your federal income tax will be 22% (if you’re the head of a household, not single). Say you put away $5,000 in your HSA. You don’t have to pay taxes on that $5,000. That’s a savings of $1,100 (22% of $5,000)!
HSA contribution limits for 2020 are $3,550 for self-only coverage and $7,100 for families. Those tax savings can add up over the years.
4. Invest your HSA dollars
Many with HSAs aren’t aware that HSA dollars can be invested. As you build up your HSA account, investing a portion of that money can be a smart way to grow your balance even faster.
In fact, some recommend thinking of your HSA as a retirement account. Ask your HSA provider how to invest your HSA funds.[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]