HackMyHSA

1. Tax-Deductible Contributions

Contributions to your HSA are deducted from your taxable income, lowering your tax bill for the year. For example:

• If you contribute $3,850 (the 2024 individual limit) and are in the 24% tax bracket, you’ll save approximately $924 on your taxes.
• For families contributing the maximum of $7,750, the tax savings can be as high as $1,860 in the same tax bracket.

Whether you contribute through payroll deductions or manually, the tax benefits are immediate and impactful.

2. Tax-Free Growth

Unlike traditional savings accounts, the growth in your HSA is tax-free. Any interest, dividends, or capital gains earned remain untouched by the IRS. Here’s how compounding can help:

• If you invest $5,000 annually and achieve an average annual return of 6%, your HSA balance would grow to over $175,000 in 20 years.
• This tax-free growth ensures you maximize the potential of every dollar saved.

3. Tax-Free Withdrawals for Qualified Expenses

When you use your HSA funds for qualified medical expenses, your withdrawals are completely tax-free. Qualified expenses include:

• Doctor visits, dental care, and vision exams.
• Prescription medications and over-the-counter drugs.
• Medical equipment such as blood pressure monitors or wheelchairs.
• Travel expenses for medical care, including mileage reimbursement at $0.22 per mile in 2024.

You can even reimburse yourself for past medical expenses years later, provided you keep good records and had an HSA at the time.

Maximizing Your HSA Benefits

To get the most out of your HSA, consider these tips:

• Contribute the Maximum: In 2024, the limits are $3,850 for individuals and $7,750 for families. If you’re 55 or older, add an extra $1,000.
• Invest Your Funds: Use your HSA as an investment account if your provider allows. It can serve as a healthcare-specific retirement fund.
• Track Your Expenses: Use our platform to document every eligible expense, ensuring you’re always prepared for tax season or future reimbursements.
• Pay Out-of-Pocket: Whenever possible, pay for smaller expenses out-of-pocket and let your HSA grow for larger, future medical costs.

Why Choose HackMyHSA?

• Automated tracking of medical expenses and mileage for deductions.
• Simple, user-friendly tools to optimize your HSA contributions and investments.
• Comprehensive education resources to help you make smarter financial decisions.
• Expert support to navigate IRS guidelines and maximize your deductions.

With HackMyHSA, you’re not just saving money—you’re building a financial strategy for long-term health and security.