If the bill were to pass, anyone with any type of health insurance could be made eligible to make HSA contributions up until the tax deadline for the year in which the coronavirus emergency declaration remains in effect. That would open up the door to many more people putting money into an HSA — at least for this year, and potentially for next year too if the coronavirus crisis continues.
Should you invest in an HSA for retirement?
However, while this legislation has been introduced, there’s no guarantee it will pass and be signed into law. So if you are not eligible to contribute to an HSA under the current rules, you’ll need to watch the legislation carefully — and should consider contacting your representatives if you support it to let them know.
If the bill does pass, it’s a good idea to max out your investments for this year and any year in which you’re eligible to contribute. For 2020, that would mean contributing up to the limit of $3,550 if you have individual coverage or $7,100 if you have a family insurance plan. Those who are 50-and-over would also be eligible for an additional $1,000 catch up contribution.
It’s also worth noting that many people who are already eligible to contribute to a health savings account are not doing so — and that’s a major missed opportunity. If your health insurance plan qualifies you to put money into an HSA, you don’t have to wait for lawmakers to take action. Start investing in an HSA ASAP. Leave the money to grow so that when you reach retirement age, you’ll have a generous nest egg earmarked for your healthcare needs. This will give you a lot more financial security in the end.