Let’s be real; who the hell likes to pay all those medical expenses? Why do you need to cut an arm and a leg off just to pay for that 15 minute visit at the walk in? As a young adult, we’re trying to save up and survive out here so we’re gonna tell you the what’s up on how to apply for a Health Savings Account (HSA) so you can save those limbs!
Okay, But What Is It?
Having a HSA is basically like the bank, credit union or insurance company is giving you a damn break; it’s a tax advantaged account for y’all with them high deductible health plans ( HDHPs). It helps to pay for those grimey deductibles and copays. Now, don’t be going to the emergency room for a little cough, it’s only for qualifying expenses. Besides those deducts, it could pay for some co insurance, drug, dental and vision expenses.
Now, The Numbers
You’re the one making this account grow, you put money into it which can reduce your taxable income and that dough you put in grows tax free over time. Even money you take out for those doctors visits are tax free so chill and relax. The annual maximum contribution for an HSA in 2024 is $4,150 for those riding solo or $8,300 if you got a full house. Even auntie can qualify if she’s hittin’ that 55th birthday. They can sprinkle $1000 into that account as a catch up contribution so let your auntie know what’s good.
All Bosses Aren’t Out To Get You!
Some employers will provide an annual tax-free contribution to help fund your HSA. Your boss is basically paying for that tooth filling! Only thing is the employer contribution goes toward your maximum contribution for the year. You still gotta have skin in the game and put your money in.
