Don’t Miss Out On This Last-Minute Tax Planning Tip

It usually happens in your accountant’s office or when meeting with your financial planner. As you review your 2019 W-2, it becomes clear that you are missing out on a key tax benefit:  maxing out your Health Spending Account or HSA.

To some degree it might not seem important or maybe you just think you’ll get to it next year. But many Americans feel they’re behind in retirement planning and every little bit helps. Don’t overlook one of the special features of an HSA. Like with an IRA, participants have until April 15th to fund it for the prior year.

And HSA providers are ready for this last-minute funding.

“Just like with IRAs, we see the biggest rush when they have had their taxes completed,” says Anna Kissick, Director of HSA Business Development at Liberty Savings Bank. “Their tax accountant has that discussion about what are additional things a consumer can do to save on taxes and they invariably talk about how much more they can contribute to maximize their tax deduction.”

This can also create a meaningful tax impact. HSA contributions are an above the line deduction on a tax return. For 2019, Americans can still fund $3,500 for individual plans and $7,000 into family plans. Further, if you are over 55, you can also do a catch-up contribution of $1,000. For many, this can translate into real tax savings…Read more>>