By contributing to an HSA, taxpayers will save on federal and state income taxes. If your employer offers a high-deductible health insurance policy, you may be able to make pretax contributions, as you would with a flexible-spending account.
If you open the HSA on your own, your contributions will be deductible when you file your taxes, even if you don’t itemize. The total amount of savings depends on a taxpayer’s federal and state income tax bracket and the amount that is deposited into the HSA account.
Federal tax law limits the amount that can be contributed annually to health savings accounts. In 2013, the maximum annual contributions are $3,250 for individuals and $6,450 for families, plus an additional $1,000 catch-up contribution for those age 55 or older.
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