4 Tips to Manage Your Health Savings Account -- and Maximize It for Retirement
Not everyone is eligible to contribute to a health savings account (HSA), but if you're enrolled in a high-deductible health insurance plan, it pays to see if you qualify to participate. Not only are HSAs extremely useful during your working years, but they also function as retirement savings plans. They also come with a host of tax breaks -- namely, tax-free contributions, tax-free investment growth, and tax-free withdrawals.
Of course, the savvier you are with your HSA, the better it will serve you. To that end, here are a few tips for making the most of that account.
HSA limits can change from year to year, just like IRA and 401(k) limits. In 2020, you can contribute up to $3,550 to an HSA if you're participating on your own behalf. If you're funding that account on behalf of your family, that limit doubles to $7,100. But these limits are changing in 2021 to $3,600 and $7,200, respectively, so be sure to adjust your contributions if your goal is to max out.
Source Fool.com
