Meridian Financial Advisors | Fee-Only Advisors

HSA accounts – Tax Free Funds for Healthcare

A health savings account is a tax free way to save for healthcare expenses during retirement.  If you have a high deductible healthcare plan you can make a tax deductible contribution to an HSA account that can be invested in low cost mutual funds or Exchange Traded Funds ( ETFs).  You can withdraw funds from this account tax free for nearly any medical expense including paying for Medicare Part B premiums prior to taking Social Security.  Once you turn 65 you generally must stop making HSA contributions however there are a few workarounds that may allow you to continue to make contributions until age 70.

Below are the important dates to keep in mind regarding contributions and reporting distributions.


IRS Tax dates affecting your HSA:

  • January 1 – April 15 – Contributions can be made for prior  tax year or current tax year. This is the same for IRA contributions.  Be sure to specify the correct tax year for your contributions made during this time period.
  • January 31 – Tax Form 1099-SA distributed. 1099-SA reports all withdrawals from the HSA between January 1 and December 31 of the previous tax year.
  • April 15 – Last day to make contributions to your HSA for the prior tax year. Contributions must be RECEIVED in our office by this date.
  • May 31 – Tax Form 5498-SA distributed. Form 5498-SA reports all contributions made between January 1st and December 31st of the prior tax year. This form also reports contributions made between January 1st and April 15th for the current tax year.