28% of Wisconsin companies offer health plans paired with Health Savings Accounts (HSAs).
If yours is one of those companies, here are three things you should know:
- Contributions are tax deductible
- The earnings are tax free
- Even withdrawals are tax free (with some minor exceptions)
That’s a win‐win‐win tax trifecta!
More good news: for 2012, your contribution limit will increase by $50 (from $3,050 to $3,100). Your family contribution limit will also increase (from $6,150 to $6,250).
But here’s something interesting: despite all the tax advantages, the average HSA account balance is still only about $2,000.
The Wisconsin legislature recently changed the tax treatment of HSAs to comply with federal codes. For details, go here.