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By timestaff
May 20, 2014

To be eligible for this nifty tax-advantaged plan you must also be enrolled in a High Deductible Health Plan (HDHP). Translation: Your health insurance plan — whether you have a plan through work or on your own – must have an annual deductible of at least $1,250 for an individual and $2,500 for a family. You can tap the HSA to pay for your deductible if you don’t want to cover those costs out of your own pocket. Your HDHP might also carry a higher maximum annual out-of-pocket limit than you would have on a “regular” plan. In 2014 the max you would pay in medical costs if you hold an HDHP is $6,350 for an individual and $12,700 for a family plan.

If you can handle the higher deductible and higher annual max, the combination of a high-deductible health plan and an HSA can help you to build up savings to cover the inevitable out-of-pocket health care expenses you’re likely to run into during retirement.

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The purpose of this disclosure is to explain how we make money without charging you for our content.

Our mission is to help people at any stage of life make smart financial decisions through research, reporting, reviews, recommendations, and tools.

Earning your trust is essential to our success, and we believe transparency is critical to creating that trust. To that end, you should know that many or all of the companies featured here are partners who advertise with us.

Our content is free because our partners pay us a referral fee if you click on links or call any of the phone numbers on our site. If you choose to interact with the content on our site, we will likely receive compensation. If you don't, we will not be compensated. Ultimately the choice is yours.

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