HCR Wealth Advisors is a registered investment advisory firm based in Los Angeles, California. The firm helps the high net worth class of people by developing strategies to assist them in reaching their financial goals.
According to HCR Wealth Advisors, opening a health savings account is a step clients should consider. This is a savings account where anyone can put money which can be used in the future to pay for their treatment costs. The account is strictly for qualified medical expenses. But before you get to start depositing cash in the Health Savings Account, there is some qualification you must attain by being placed in a high deductible health plan (HDHP). The requirements are as follows:
- Yearly deducting for an individual is $1350 while for a family is $2700.
- Yearly out-of-pocket expenses for an individual is $6750 while for a family is $13500.
In case you qualify to open the account, then the required limit for contribution in 2019 is $3500 for an individual and $7000 for a family. In addition, for those above 54 years of age are allowed to add $1000 in the account.
The HCR advisors point out certain advantages:
- The contribution made to the account is not taxed. They are free from the federal income tax because they are not added in your gross income. You can lower your taxable income if your deposits are in the form of, which gives you the power to deduct them from your income.
- Tax-free earnings. Growth or earnings from this account are not taxed.
- Tax-free withdrawals. In case of an emergency and you decide to withdraw from the account then these withdrawals are not taxed.
- There is no forfeiture where it is either you use it or lose it. Thus any remaining fund will be untouched and used for your future.
- After reaching 65 years, you are allowed to withdraw the money regardless of whether it will be used for medication or any other thing. Although you may pay income tax if you do not use the money for qualified medical expenses.
In conclusion, HCR Wealth Advisors suggests for individuals consider such an account. The advantages above are meant to show people that this is a powerful tool. This is a way to ensure accessible medication.
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