Accumulating wealth does not equal happiness. However, money serves as a protection. It is important to do as much as you can to ensure that you and your family have what is needed to protect yourselves financially. One way you can do this is by getting a health savings account. Here are the top benefits associated with this type of savings account.
With a health savings account, you will be able to put aside money for a variety of expenses. This can include dental, medical, and mental health services. Before getting this type of account, you need to know what rules the Internal Revenue Service has put in place for these accounts and how they would affect your family.
One reason why a person may want this type of account is because others can contribute to it for you. In addition to putting your own money in the account, your employer, a family member, or anyone else can contribute to the account. This is another area where a person should know about limits the IRS has set on these accounts. For example, the limit will go up to $3,650 for individuals in 2022 and $7,300 for family coverage in 2022.
There are tax benefits associated with this account as well. Make sure you understand how withdrawals will affect your taxes and other details related to this topic.
At the end of the year, the money in your HSA will rollover. This gives you more flexibility. Check with the IRS to find out how much can be carried over to the following year.