SUBSCRIBE
Enter your Name and Email address to get
the newsletter delivered to your inbox.
Please include name of person that directed you to my online newsletter so I can thank them personally.
Craig Lundquist, MBA, ChFC®, CRPC®
VP of Wealth Management
651-773-2757
Kristin Becker
Senior Administrative Assistant
651-773-2821
Ideal Wealth Advisors
Located at Ideal Credit Union
8499 Tamarack Road
Woodbury, MN 55125
CRPC conferred by College for Financial Planning
May/June 2025
Choosing a Health Savings Account
Health Savings Accounts (HSAs) are unique in that besides helping you manage healthcare costs effectively, they also offer triple tax advantages: Contributions are tax-deductible, growth is tax-free, and withdrawals for qualified expenses are tax-free.
An HSA is a tax-advantaged savings account that helps individuals save for qualified medical expenses. To be eligible for an HSA, you must be enrolled in a High Deductible Health Plan (HDHP), which has specific minimum deductible and maximum out-of-pocket expense limits defined annually by the IRS. (See the table below.) Additionally, you can't be enrolled in Medicare or claimed as a dependent on someone else's tax return.
Advantages
Along with minimizing your current taxable income, HSAs offer numerous other advantages. Unlike employer-offered Flexible Spending Accounts (FSAs), which may have a "use it or lose it" stipulation, HSAs allow funds to roll over year after year. This feature is especially beneficial for long-term savings.Many HSAs offer investment options that can potentially yield higher returns than traditional savings accounts. This means you can grow your HSA funds over time, maximizing their utility. Once you reach age 65, HSAs can be used for non-medical expenses without penalties (though income taxes will apply). This makes HSAs an excellent supplement to retirement savings.
Considerations
HSAs may charge various fees, including account maintenance fees and transaction fees. It's crucial to compare different HSA providers to understand their fee structures, as these can impact your savings.Interest rates on HSA accounts vary significantly; some providers offer competitive rates akin to traditional savings accounts, while others provide the opportunity to invest in stocks, bonds, or mutual funds. Navigating the intricacies of HSAs can be overwhelming. Working with a trusted financial professional can provide tailored insights and strategies to help you integrate an HSA into your broader planning efforts.
HSA and HDHP Limits for 2025
HSA Contribution
Individual - $4,300Family - $8,550
HDHP Deductible
Individual - $2,850 - $4,300Family - $5,700 - $8,550
HDHP Maximum Out of Pocket (excluding premiums)
Individual - Not more than $5,700Family - Not more than $10,500
697233
CONTACT US
Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.
Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Ideal Credit Union and Ideal Wealth Advisors are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using Ideal Wealth Advisors, and may also be employees of Ideal Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of Ideal Credit Union or Ideal Wealth Advisors. Securities and insurance offered through LPL or its affiliates are:
The sender and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.
The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.