Health Savings Accounts Can Reduce Tax Bills. But Beware the Paperwork.

At this time of year, many people are looking for ways to reduce their tax bills. One option may be to make a contribution to a health savings account.

You can still make contributions for the 2018 tax year to an H.S.A. until the federal tax filing deadline in April, if you qualify.

“It’s not too late to save on your 2018 taxes,” said Todd Berkley, vice president of BenefitWallet, a division of Conduent that manages H.S.A.s and other employee benefits. “Most people don’t know that.”

H.S.A.s are special savings accounts that offer multiple tax benefits. Money is deposited tax free and grows tax free. It’s also withdrawn tax free, as long as funds are spent for eligible medical and health expenses.

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Written By: Ann Carrns

Published By: www.nytimes.com

March 28, 2019 In: Financial Articles Comments (None)