If you have a Health Savings Account (HSA), or are considering getting one, there are some quiet but powerful upgrades put into place in the so-called “One, Big, Beautiful Bill.”
The main benefit of an HSA is that you can get a tax deduction for contributing to the account, and then you can let the account grow tax-free over time, and then when you take out the money, as long as you use it for health expenses, you don’t have to pay tax on the withdrawal. This is a nice little “secret” tax strategy that not everyone knows about, but smart clients do use.
Here are a few new improvements for HSA’s that may make this type of account more appealing for more clients:
👉 You Can Now Use Your HSA for Concierge Medical Services
The new law allows you to pay for “Direct Primary Care” (sometimes called concierge care) with your HSA. So, if you have a doctor on a subscription model (think “monthly membership”), you may be able to pay that “membership fee” with pre-tax dollars.
👉 Telehealth is HSA-Eligible
Any “virtual visits,” including mental health therapy and chronic condition check-ins, can be covered by your HSA.
👉 More Plans Are Now HSA-Eligible
Some insurance plans that didn’t previously qualify for HSA use are now in the clear. Double-check your plan with your provider before you open an HSA, because you would need to make sure that your insurance plan is HAS-eligible.
Smart HSA tax strategies can help certain clients save good money on taxes while also saving money for medical expenses. The new “upgrades” contained in the new tax legislation make starting (and continuing to fund) an HSA even more worth consideration. Hope this helps!
Interested in reducing your tax burden in 2025 and beyond? Our tax reduction consulting service is designed to help you take full advantage of recent changes in tax law. To schedule a meeting with an Easy Tax Service Professional, please call 928-775-7000 Ext 0 and speak with our receptionist.