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Avraham "AY" Rappaport, CLTC
President, Financial Professional
Yaniv "Jay" Natanov
President, Financial Planner
Eli Rappaport
Vice President, Financial Planner
Shlomo Rosenstein
Financial Professional
Ozzie Marizan
Financial Planner
Joseph Greer
Employee Benefits Administrator
Dylan Pinsky
Client Relations Manager
Premier Financial
6395 Dobbin Road, Suite 102
Columbia, MD 21045
Phone: 240-309-6001
Email: dylan.pinsky@prudential.com
Website: premierfinancial1.com
March/April 2024
HSA Contributions Offer Tax Benefits
If you’re looking for a way to lower your 2023 income taxes, your health plan might be able to help. When you’re covered under a high deductible health plan (HDHP), any contributions you make to a health savings account (HSA) by the April 15, 2024, tax filing deadline can be deducted on your 2023 tax return.
Triple Tax Benefits
Health savings accounts offer a tax-advantaged way to pay current and future out-of-pocket medical expenses. HSA contributions are made pretax. Money in the account is invested based on your preferences and potentially grows tax-free. Withdrawals to pay qualified medical expenses are also tax-free.Nonqualified withdrawals incur a tax penalty before age 65. After reaching 65, you can take penalty-free withdrawals for any reason but must pay income tax on any nonqualified amounts.
HSA Contribution Limits
For 2023, contribution limits are $3,850 for individuals and $7,750 for families. Those limits increase to $4,150 and $8,300, respectively, for 2024. Individuals 55 and older can contribute an additional $1,000. Limits include employer contributions, if any. You must participate in a high-deductible health plan to be eligible for an HSA.Let It Ride
There is no time limit on using the money in your HSA, so you don’t have to request reimbursement for medical expenses in the year they occur. If you save your receipts, you can submit them for a lump-sum distribution in the future.Save for Future Care
With long-term care costs rising every year, a lengthy stay in a nursing home may become unaffordable. By contributing the maximum amount to an HSA and allowing the account to grow throughout your working years, you could accumulate substantial assets to help pay for care should you need it in the future.Name a Beneficiary
As with 401(k) and other investment accounts, you designate a beneficiary to receive any funds remaining in your HSA when you die. If you name your spouse, the account remains an HSA for his/her benefit. If you name someone other than a spouse, the HSA ends with your death. The account’s fair market value then becomes taxable income to the beneficiary, less qualified medical expenses paid on your behalf.Talk to your financial and tax professionals for more detailed information.
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Premier Financial is not affiliated with Prudential Financial. Premier Financial sells insurance products of Prudential Financial's affiliated insurance companies in addition to products of non-affiliated insurance companies. Premier Financial is authorized to sell and service certain insurance products of Prudential Financial companies as well as use this material. Premier Financial and its representatives do not give tax or legal advice. Please consult with your own advisors regarding your particular situation. Offering financial planning and investment advisory services and programs through Pruco Securities, LLC (Pruco), under the marketing name Prudential Financial Planning Services (PFPS), pursuant to a separate client agreement. Offering insurance and securities products and services as a registered representative of Pruco, and an agent of issuing insurance companies. 1-800-778-2255. Dylan Pinsky is employed by Eli Rappaport and not The Prudential Insurance Company of America or its subsidiaries.
This newsletter is general educational information provided by a Prudential Financial Professional and is not intended to market or sell any specific products and services, but rather provide general information about the subject matter covered only.
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