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Published on May 13
On Tuesday, the IRS released Revenue Procedure 2021-25 with the official Health Savings Account (HSA) limits for 2022. See the full details in Figure 1 below.
With their triple tax benefits, HSAs are one of the best ways for individuals and families to save for healthcare-related expenses. You deposit money into the account on a tax-free basis (typically through payroll contributions), your balance can build tax-free through asset investment, and you can withdraw it tax-free to cover eligible healthcare expenses. These accounts offer significant value whether you use the money right away to pay for current expenses, or leave the funds to help cover expenses in retirement.
In order to contribute to an HSA, you must be enrolled in a qualifying high-deductible health plan. When your employer’s annual open enrollment comes around, be sure to inquire about the HSA options that may be available to you. If you’re self-employed, you may be able to open an individual HSA. Consult with your tax advisor and check with banks and investment providers to see what opportunities are out there.
This content is being provided for informational purposes only and is not intended to provide, and should not be relied upon for, business, tax, legal, or accounting advice. Please consult with your own HR, tax, legal, and/or accounting advisors before making any decision related to the information above.