Start Contributing More to Your Health Savings Account in 2015

Published on July 10, 2014

self directed IRAHealth savings accounts are a tax-advantaged way to save and pay for medical expenses, available for people who are enrolled in high-deductible health plans. Just as with various types of retirement plans, there are annual contribution limits for HSAs but funds may accumulate year to year.

The IRS has announced it is raising the contribution limits for health savings accounts (HSAs) in 2015. These increases will go into effect in January 2015.

For 2015, a high-deductible health plan is defined by the IRS as follows: “A health plan with an annual deductible that is not less than $1,300 for self-only coverage or $2,600 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $6,450 for self-only coverage or $12,900 for family coverage.”

You can read more at www.irs.gov and the Revenue Procedure 2014-30. You can always consult with one of the professionals at Next Generation Trust Services if you need help deciphering the guidelines concerning health savings accounts.

Self–directed HSAs
Saving for your health care during your retirement years is a necessity in today’s world and with Americans’ longer life spans. You may self-direct the investments the HSA makes and accumulate a heftier emergency medical fund within the health savings account. By investing in alternative assets you already know and understand, you have the potential to build a much larger nest egg to pay for your health care costs. The accumulated funds may be withdrawn tax-free to be used for qualified medical expenses. After age 65, the account holder may use the funds for anything deemed necessary without penalty.

You may also make a one-time (per lifetime) tax-free rollover of funds from an IRA into an HSA. That rollover amount must comply with the prevailing annual contribution limit. We recommend your consult your tax professional regarding these transactions to ensure you are doing so to your advantage and within IRS guidelines. There are restrictions regarding these rollovers and your health plan enrollment requirements; we are happy to answer questions about self-directed HSAs, so contact Next Generation Trust Services at (888) 857-8058 or Info@NextGenerationTrust.com

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