Health Savings Account
A Michigan Health Savings Account is a High Deductible Health Insurance Plan (HDHP) combined with an HSA savings account that you can open up at your local bank. You can contribute up to $3,050 for an individual and $6,100 for a family to get a tax deduction in the year that you contribute.
This allows your medical deductions to be paid with pre-tax dollars. Your Health Savings Account rolls over each year. Once you meet your deductible, coverage is 100%. Your preventive care, which includes physicals, pap smears, mammographies, and immunizations, is covered 100%.
Anyone under 65 can qualify for an HSA, as well as your employer. Your employer can choose to deposit money and receive a tax deduction. Once a person turns 65, the Health Savings Account becomes an IRA. You can continue to withdraw money from the account tax-free for qualified medical expenses after age 65. Contributions cannot be made after age 65. Your HSA contributions will not affect your IRA limits. It is just another way to save for retirement.