Saturday, May 15

These 5 benefit enrollment mistakes could cost you in 2019

The sweetener for participating in a high-deductible plan is the ability to save money in a health savings account on a tax-favored basis.

In 2019, you can save up to $3,500 in an HSA if you have self-only coverage or up to $7,000 for a family plan. If you’re 55 and up, you can make an additional contribution of $1,000.

Employers can also help you fund this account: More than 3 out of 4 employers that offer high-deductible plans offer some kind of matching contribution or seeding for workers with HSAs, according to data from Alight Solutions.

Unlike flexible spending arrangements, HSA balances roll over from one year to the next, giving savers an opportunity to accumulate and invest their money over long periods of time.

“It’s pretax, it will reduce your taxes over the course of the year, and it’s a nice cushion for expenses,” said Buckey.

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