For those enrolled in the High Deductible Health Plan (HDHP) for medical coverage, MSI offers you the opportunity to open a companion Health Savings Account (HSA).
What is a HSA?
A Health Savings Account is a tax-advantaged personal savings and investment account that is used to save and pay for qualified healthcare expenses, whether they are incurred now or in the future. Paired with an HDHP, an HSA is a powerful financial tool that allows you to manage and plan for your healthcare expenditures. For example, you can use HSA dollars to pay for Medicare premiums when the time is appropriate. *
HSA Annual Contributions:
Single: $4,300
Family:$8,550
Media Source generously contributes $1,000 for a single and $2,000 for a family on an annual basis! Please note, your contribution along with MSI’s can exceed the annual contribution limits noted above.
However, unlike other financial savings vehicles (Roth IRA, Traditional IRA, 401(k), etc.), an HSA has unique potential to offer triple tax savings through:
- Federal & State Tax-deductible contributions to the HSA
- Tax-free interest or investment earnings
- Tax-free distributions when used for qualified healthcare expenses
65+ Members:
- It is the member’s responsibility to ensure eligibility requirements are met
- One should consult a tax advisor as individual factors and situations vary
- Medicare Part A and/or Part B members cannot contribute pre-tax dollars to an HSA
