More than 36 million Americans enrolled in tax-advantaged HSAs can utilize these tips to build their personal savings during tax season
DALLAS, March 4, 2025 /PRNewswire-PRWeb/ -- Improving financial wellbeing is a shared goal for many Americans, with 41% of people wanting to increase their savings this year, and 30% saying they want to spend less, according to a recent survey. A health savings account (HSA) is a powerful financial tool and a proven way to reduce tax liability and support savings, making these accounts a perfect fit for current consumer needs. As we enter the thick of tax season, HSA Store, the first and leading online store to exclusively sell products and services that are eligible with HSA funds, is educating consumers about the tax advantages of enrolling in and using an HSA, and sharing five important HSA facts.
What is an HSA?
An HSA is a tax advantaged account that allows users to set aside pre-tax income to cover qualified medical expenses, thereby reducing their taxable income. HSA funds always belong to the account holder, and unused funds roll over from year to year and can be used in retirement. An individual can enroll in an HSA through an employer-sponsored benefit or individually, as long as they are enrolled in a qualified high-deductible health plan. An HSA can be used to pay for a wide variety of eligible expenses, including everyday healthcare products, copayments, prescription and OTC medications, telehealth services, and more.
5 Ways HSAs Improve Savings and Reduce Tax Liability
- Use tax-free HSA funds to pay for products you are already buying. The average American household spends $1,600 a year on products that are HSA eligible. Account holders can save money by using their tax-free HSA funds to purchase these items. There are thousands of eligible items available, from first aid supplies, infant products, allergy relief and OTC meds to high-tech products for self care, skincare, and bodily health monitoring. In addition, HSA Store features eligible telehealth services for mental health, mobility, sleep, menopause, and more. Check out the comprehensive, searchable eligibility list on HSA Store to find the products and services you need.
- Reimburse yourself for 2024 healthcare expenses. HSA funds do not expire, so account holders who have a lingering medical bill from 2024 can use HSA funds from a previous year to pay off that expense with tax-free funds.
- Make a 2024 HSA contribution until April 15, 2025 (or your tax filing deadline). Individuals who did not fully fund their HSA in 2024 can still make a contribution up until their tax filing deadline to reduce their 2024 tax liability. For individual HSAs, the 2024 contribution limit was $4,150, while the 2024 family HSA contribution limit was $8,300. Individuals over 55 can contribute an additional $1,000 over the contribution limit to their HSA. This is called a catch-up contribution.
- Track healthcare receipts and HSA expenses. While HSA expenses do not have to be approved by an employer or HSA administrator, if an account holder is ever audited by the IRS, these expenses may be examined. That's why it's important to track healthcare expenses and HSA purchases. HSA Store offers a free HSA Expense Dashboard™ and HSA ExpenseTracker™ app that consumers can use to track receipts and spending from any service provider or retailer.
- Use your HSA to save for retirement. In addition to paying for healthcare expenses now, because money in the HSA rolls over from year to year, these accounts are an ideal way to save for future healthcare expenses and to reinforce your retirement savings. HSA Store offers planning tools like an HSA Tax Savings Calculator, an HSA Future Value Calculator, and even an HSA 401(k) Maximizer Calculator to support financial planning goals for account holders.
The HSA Learning Center at HSA Store features in-depth articles and interactive learning tools to increase account holder education and help HSA users benefit better from these tax-free saving accounts.
About Health-E Commerce
Health-E Commerce® is the parent brand to FSA Store® and HSA Store, online stores that serve the 70+ million consumers enrolled in pre-tax health and wellness accounts. The company also created Caring Mill®, a popular private-label line of health products through which a portion of every purchase is donated to the Children's Health Fund. Since 2010, the Health-E Commerce brands have led the direct-to-consumer e-commerce market for exclusively pre-tax health and wellness benefits. Health-E Commerce plays an essential role in expanding eligibility for important new product and telehealth categories within the list of eligible medical expenses.
Media Contact
Barbara Tabor, Health-E Commerce, 651-230-9192, [email protected], https://www.health-ecommerce.com/
SOURCE Health-E Commerce
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