Tax Season and Health Savings Accounts (HSA)
Tax Day is looming, and just about everyone is looking for ways to hold onto more of their hard-earned money. If you are enrolled in the Company’s High-deductible Health Plan (HDHP Medical Plan), you are eligible to take advantage of a Health Savings Account (HSA), which allows you to save money on a pre-tax basis and use these funds to pay for healthcare-related expenses without being taxed. Additionally, Montage International contributes funds to your HSA each paycheck , providing “free money” that you can use as needed for eligible healthcare expenses. For a full list of eligible expenses, visit the IRS website here. To change your per paycheck contribution any time, go to your Alight Worklife portal and click Change HSA Contribution on the left-hand menu.
While HSAs can save you money throughout the year on healthcare, there are a few things you can do during tax season to further maximize savings with an HSA, including:
Take advantage of the triple threat – With an HSA, the amount contributed is a part of a triple tax advantage; tax-free contributions, tax-free withdrawals for qualified medical expenses and tax-free interest earned on savings, making it worthwhile to contribute more if possible, to save money on taxes while putting funds away for future expenses. Earn interest – Unlike funds contributed to a Flexible Spending Account (FSA), unused HSA funds can roll over from year to year and collect interest over time, so if you don’t need all the money this year, you can keep it for future expenses. For information on how to get started with investing funds in your HSABank account go here to get started - HSAInvest. Continue contributing – The deadline to contribute to an HSA to maximize savings for 2024 taxes is April 14, 2025. For the 2025 tax year, individuals can contribute up to $4,300, and families have a maximum of $8,550, both an increase over last year’s limits. As in previous years, people 55 and older can contribute an additional $1,000 catch-up. HSA Bank has this handy Tax 101 FAQ to learn more. HSA Bank and Montage International does not provide legal or tax advice. Please contact your tax professional with any tax- related questions.
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