INSURANCE

Q: Have the limits for HSA contributions been increased for 2020?

A: An HSA is an IRS approved tax-advantaged HealthIt is used by people who have a qualified High-Deductible Health Insurance Plan (HDHP) to pay for qualified medical expenses. The funds contributed to an HSA are not subject to federal income tax at the time of deposit, making this a good way to save for medical expenses including deductibles, copayments, coinsurance, and some other expenses.

The new limits for Health Savings Accounts( H SA) for 2020 have gone up $50 for individual coverage and $100 for family coverage, bringing them to $3550 for individuals and $7100 for families. The catch-up contribution limit for those over age 55 will remain at $1000. Unlike a Flexible Spending Account (F SA) your H SA balance rolls over from year to year, so you never have to worry about losing your savings. HS As can be invested in stocks, bonds, mutual funds and a wide variety of other investment choices with interest or other earnings growing tax-free. Once you are over age 65 and enrolled in Medicare, you can no longer contribute to an HSA, but you can still use the money in your account for out-of-pocket medical expenses.

You qualify to contribute to an HSA if:

• You are not on Medicare or covered by another health plan that is not HDHP

• You cannot be claimed as a dependent on someone else’s tax return

• You are enrolled in a high deductible health insurance plan (HDHP) as defined by the government

For more detailed information on HSA guidelines and regulations, please go to www.irs.gov.

For information on the individual, group health insurance plans, Medicare Supplements or Medicare Advantage plans, call meat email your question to Lmutsko@mutskoinsurance.com. I’m here to help.

Laura Mutsko Mutsko Insurance Services, LLC 6982 Spinach Drive, Mentor, OH 44060 440-255-5700 www.mutskoinsurance.com