YOU CAN SET ASIDE MORE FOR HEALTH CARE IN 2024.

A recent article from Kiplinger Personal Finance highlights the importance of funding a health savings account (HSA) to prevent medical expenses from impacting one's finances. The article states that medical costs in the US continue to rise, leading many families to delay necessary care. HSAs offer a tax-efficient way to save for out-of-pocket medical expenses, with contributions being pretax or tax-deductible. In 2024, the contribution limits for HSAs will increase, allowing individuals with individual health insurance plans to contribute up to $4,150 and those with family coverage to contribute up to $8,300. The article also clarifies that HSAs do not have a "use it or lose it" rule, and funds can be rolled over to future years. Additionally, HSAs can be used to pay for medical costs in retirement, including those not covered by Medicare. The article suggests investing a portion of HSA contributions for long-term costs, but notes that only 12% of account holders currently do so. It recommends researching and choosing HSAs with investment options that have low fees and high-quality, low-cost investment options. [Extracted from the article]