Capital Preservation Services offers clients advanced tax planning guidance. The professionals at Capital Preservation Services work closely with clients to identify ways they can save on taxes based on their financial circumstances. People may have several ways of reducing their tax burden that they are not taking full advantage of, such as funding a health savings account (HSA).
People with a high-deductible healthcare plan may qualify for an HSA. This tax-exempt account allows people to cover qualified medical expenses while reducing overall tax liability. All contributions to an HSA are tax-deductible and the withdrawals are likely to be untaxed as long as they are used for certain medical expenses.
In 2020, individuals can contribute up to $3,550 to an HSA provided they have high-deductible, self-only coverage. Families with high-deductible coverage may be able to contribute up to $7,100. Employers often offer an HSA, but individuals can also start their own accounts through a bank or other financial institution. Tax professionals can help people make the most of their HSA savings.
