For 2014, you can contribute $3,350 if you have an individual plan. Or $6,550 for a family plan. If you’re 55 or older, you can add an additional $1,000.
Advantages of an HSA:
Strategy 1: Fund your HSA early. Contribute the maximum allowed to your account at the beginning of each year. Even though you have until April 15 of the next year to make HSA deposits, this gives you more time to take advantage of your HSA's tax-free growth. Over the years, you could get tens of thousands of additional dollars with this strategy alone.
Strategy 2: Wait to withdraw. Delay taking money from your HSA for as long as possible. Pay for your medical expenses out of pocket and leave your HSA money so it grows tax free. Then pay yourself back from your HSA in the future for those eligible medical expenses. Be sure to save your receipts.
Strategy 3: Invest. Use your HSA balance to buy mutual funds or other investments that offer growth potential.*
A 45-year-old couple could have $134,525 to $172,510 EXTRA in their HSA when they retire by using these strategies. Here's how:
They deposit $5,450 annually to their HSA for 20 years and earn a 6 percent return on their HSA investments:*
If the same couple delays taking out the $2000 each year, paying their health care expenses out of pocket:
The 6 percent rate of return is for illustration only. Actual returns will vary. Investing in mutual funds involves risk, including possible loss of capital.