what is an hsa?
🟠A Health Savings Account (HSA) is
a tax-advantaged savings account
that allows individuals to save
money for medical expenses.
🟠Its for individuals who are
enrolled in a high-deductible
health plan (HDHP).
🟠Contributions to an HSA are tax-
deductible, and withdrawals for
qualified medical expenses are
tax-free.
eligibility requirements
To be eligible for an HSA in Colorado, you must:
🟠Be covered by a high-
deductible health plan (HDHP).
🟠Not be enrolled in Medicare.
🟠Not be claimed as a
dependent on someone else's
tax return.
Choosing an HSa provider
🟠Research different HSA
providers to find one that
suits your needs.
🟠Consider factors such as
fees, investment options,
customer service, and
online tools.
opening an hsa
🟠Contact your chosen HSA
provider to begin the
account opening process.
🟠Provide the necessary
personal information and
proof of your HDHP
coverage.
contributions
🟠Decide the amount to
contribute to your HSA
based on your IRS limits.
🟠It can be made by you, your
employer, or both.
🟠Contributions made by your
employer may be excluded
from your taxable income.
tax benefits
🟠Contributions are tax-
deductible, reducing your
taxable income.
🟠Withdrawals for qualified
medical expenses are tax-
free.
🟠Any earnings on your HSA
investments are tax-free as
well.
using your hsa funds
🟠Use your HSA funds to pay for
qualified medical expense.
🟠Qualified expenses include
doctor's visits, prescription
medications, dental and vision
care, and more.
🟠Keep track of your expenses and save receipts for tax
purposes.
conclusion
🟠Opening and HSA in
Colorado provides tax
advantages and flexibility in
managing healthcare
expenses.
🟠Research HSA providers,
understand eligibility
requirements, and make
informed decisions
regarding contributions and
investments.