When it comes to your health and the health of your family, you want the best. Whether you want to have funds available for routine medical expenditures or to make sure you have emergency funds available for a health related crisis or accident, a Florida Health Savings Account (HSA) is a good way to have 100 percent of your contributions deductible, just like an IRA. Here are a few of the benefits from having a Florida Health Savings Account.
Who Qualifies for a Florida Health Savings Account?
There are certain qualifications for a Florida Health Savings Account? You cannot:
- Be covered by a high deductible health insurance plan
- Not be covered by health insurance
- Not be enrolled in Medicare
- Not be another person’s dependent (for example, if your child is your dependent, he or she cannot have his/her own Florida Health Savings Account).
What Can the Funds in Your Florida Health Savings Account Be Used for?
You can withdraw funds to pay for qualified medical, dental and vision expenses and those are never taxed at any time. The rest of the funds in your account remain tax-deferred. You also accumulate tax-deferred interest on your earnings. However, beware, if you withdraw any funds to be used for non-qualifying medical expenses, you will face taxes at your typical rate, as well as a 10 percent tax penalty.
What Are the Contribution Limits, Deductibles and Maximum Out-of-Pocket Expenses?
When it comes to the finances regarding a Florida health savings account, there is some good news. For a single person, your contribution limit is $3,450 with a minimum deductible of $1,350 and the maximum out-of-pocket expenses are $6,650. For a family, your contribution limit is $6,900 with a minimum deductible of $2,700 and max out-of-pocket is $13,300.
There Is Good News for Those Over 55 Years Old
The good thing about being older is your contribution limit is higher so you can put more tax-sheltered funds toward health care. For a single person over the age of 55, your contribution limit is $4,450 with a minimum deductible of $1,350 and the maximum out-of-pocket expenses are $6,650. For a family, if you are over 55, your contribution limit is $7,900 with a minimum deductible of $2,700 and max out-of-pocket is $13,300.
To learn more about how a Florida Health Savings Account can help you, visit Mountain West IRA.
