It’s already part of adult life to get a stable source of income. And what’s even more challenging is that people have to make a good use out of it. It’s true that there are many things to pay for. But it’s equally important as well to save money in one way or another. This money will help people in the future especially in emergency situations. And one important reason for them to save money is to be able to bear the expenses of unexpected health concerns.
Getting an HSA
Most employees open an HSA account within their employment years. This is because they’re highly beneficial in cases of health situations. As much as people save for future scenarios, funds are sometimes not enough to cover all costs. This is what HSA is purposely created for.
An HSA is a Health Savings Account where employees give a portion of their income to. It’s in agreement with the employer especially if the employee is with an HDHP. Part of their salaries will be given as contributions to these accounts so they can use it when the need arises.
Making the Account Work
In order to have funds to shoulder qualified medical expenses, employees must have an annual contribution. For 2018, people have an annual contribution of $3,450 per individual and $6,900 per family on their HSAs. If a person is aged 55 and above he must bear an extra catch-up contribution of $1,000 a year. Now, there are changes in the HSA contribution limits 2019.
Every person must now have a contribution of $3,500 annually per individual and $7,000 annually per family. However, people who have an age 55 or above don’t need to worry because the extra catch-up contribution per year still remains the same.
It’s understandable that the solution to healthcare issues become more expensive every year. This is why accounts need to have an increase of contributions as well. Such contributions are adjusted according to inflation rates and the value of money should the time of need arise in the near future.