At that point, your account balance(s) will affect your taxes. These changes affect the account value but have no tax impact until you take withdrawals. If you’ve had swings in the value of a tax-favored 401(k), traditional IRA, Roth IRA or SEP, there are no current taxes.
But nothing is decided tax-wise until all the gains and losses from 2023 trades are tallied up at year end. For 2023, an individual can contribute $3,850 ($7,750 for a family). For 2023, an HDHP has an annual deductible of at least $1,500 for self-only coverage or $3,000 for family coverage (for 2024, $1,600 and $3,200).
An eligible employee must be covered by a high deductible health plan (HDHP). Among the tax benefits: 1) contributions are deductible within limits 2) earnings in the HSA aren’t taxed 3) contributions an employer makes aren’t taxed and 4) distributions to pay qualified expenses aren’t taxed. Evaluate whether a Health Savings Account is beneficial to you A Health Savings Account offers a tax-favored way for eligible individuals (or their employers) to set aside funds to meet medical needs.
