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Health Savings Accounts (HSAs) offer a flexible and tax-friendly way to manage healthcare expenses. Our partnership with Lively provides our health plan participants access to a top-tier HSA provider. Whether new to HSAs or looking to make the most of your current account, this guide will help you understand the benefits and how to maximize your HSA.

What is an HSA?

An HSA is a tax-advantaged savings account to help you pay for eligible medical expenses. Contributions to an HSA are tax-free, grow tax-free, and can be withdrawn tax-free for qualified medical expenses. This triple tax advantage makes HSAs a powerful tool for managing healthcare costs now and in the future.

2024 Contribution Limits

In 2024, individuals can contribute up to $4,150 in tax-free savings, and families can contribute up to $8,300. Additionally, if you are 55 or older, you can contribute an extra $1,000. These maximum limits include both employer and employee contributions combined.

How to Use Your HSA

You can use funds in your HSA for:

  • Doctor visits
  • Hospital costs
  • Deductibles
  • Coinsurance
  • Prescription drug expenses
  • Most dental and vision expenses

For more details, check out Lively’s list of qualified medical expenses.

Benefits of an HSA with Lively

  • Tax Savings: Contributions, earnings, and withdrawals for qualified expenses are all tax-free.
  • Long-Term Savings: Unused HSA funds roll over year to year, helping you save for future medical expenses.
  • Flexibility: Use your HSA funds for qualified medical expenses, including dental and vision care.
  • Portability: Your HSA is owned by you, meaning it stays with you even if you change jobs or retire.

How to Maximize Your HSA

  1. Contribute the Maximum Amount: Aim to contribute the maximum allowed each year to take full advantage of the tax benefits.
  2. Use for Qualified Expenses: Ensure your withdrawals are for qualified medical expenses to keep them tax-free.
  3. Keep Receipts: Maintain records of your medical expenses to provide proof of qualified withdrawals if needed.
  4. Plan for the Future: Consider using your HSA as a long-term savings tool for healthcare costs in retirement.

HSA Savings Calculator

To see how much you can save with an HSA, use the Lively HSA Savings Calculator. This tool helps estimate your tax savings and shows how your HSA can grow over time.

Take Charge of Your Health

By strategically managing your HSA, you can reduce your healthcare costs and save for the future. The Alliance Health Plan, in partnership with Lively, supports you every step of the way. This includes providing educational resources like this guide and assistance with your HSA account.

For more information on how to manage your HSA, check out our website Alliance Benefits Health Plan Resources. If you have questions, contact our team, and we will be happy to help Alliance Benefits Contact.