Buhr & Associates
An HSA, or Health Savings Account, is a tax-advantaged savings account that can be used to pay for current or future medical
related expenses. It is sometimes known as a medical IRA since it has some of the same features as an IRA. When combined with a high-
deductible health plan, it offers savings and tax advantages that a traditional health plan can't duplicate.
How does it work?
Employees and/or employers make tax-deductible contributions each year into a health savings account which allows employees to pay for
current and future health care costs. Any amount that an employee does not use in any given year will roll over to the next year
and continue to grow tax-free. If an employee uses any money for non-medical purpose, it will be taxed as ordinary income in addition to
paying a 10% penalty. This penalty if waived if you are over the age of 65.
Maximum Contributions
The annual maximum contribution limit for an HSA in 2016 is $3,350 for an individual and $6,750 for a family. If you are at least 55 years old
you can contribute an additional $1,000 in 2016.
Advantages:
Health Savings Account
N52 W14266 Thornhill Dr. Menomonee Falls, WI 53051
Phone: (414) 755-2024 Toll Free: (800) 730-3469 Email: twb@buhr-n-associates.com
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