 TITLE: Should I Max Out My HSA Contributions? CONTENT: How HSAs Can Save You Money\n---------------------------\nHSAs offer triple tax benefits. You can contribute to an HSA through pretax payroll deductions or deduct your contributions on your federal income taxes. Interest, dividends or capital gains on your HSA are not taxed, and you can withdraw the money tax-free for qualified medical expenses.\nAlthough HSAs can't be used to pay health insurance premiums, they can save you money on health insurance in other ways. HDHPs have lower premiums than traditional health insurance, but can ultimately be more expensive if you have a costly health care event and have to pay a lot out of pocket to meet your deductible. By helping you build an emergency health care fund, an HSA reduces the financial risk of an HDHP.\nFor example, if you're comparing a traditional family health insurance plan that has a $466 monthly premium and a family HDHP with a $395 monthly premium (the average costs for such plans in 2020), opting for the HDHP would save you $852 a year. If your employer contributes to your HSA, you'll enjoy even more financial benefits: In 2020, the average employer contribution to an HSA for family coverage was $1,018.\nWhen you do withdraw HSA funds for health care expenses, you'll be paying with tax-free money. Don't need to use the money? It will keep accumulating in your account for when you do need it. END