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Health Savings Accounts
An HSA Can Generate Up-Front Deductions

An “above-the-line” deduction is available for contributions to Health Savings Accounts (HSA) opened in conjunction with a high-deductible health insurance plan.

The IRS limits the deduction to the annual deductible on the qualifying high deductible health plan, but not more than $2,600 ($5,150, if family coverage).

These limits are $500 higher if the taxpayer is age 55 or older ($500 each if both spouses are 55 or older).

You cannot contribute to an HSA starting the first month you are enrolled in Medicare, but you may continue to use money already in the account to pay eligible medical expenses, tax-free.
 

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