You've maxed out on contributions to your traditional
You can make previous contributions to your until April 15.
What is an ?
A Health helps you manage your health care costs. According to a 2012 report from America's Health Insurance Plans (AHIP), more than 13.5 million Americans are covered by them. If you choose a qualified health plan with a high , you can open an HSA.
On top of receiving a tax deduction, in an HSA grows tax-free -- as long as you use your withdrawals for qualified health care costs. If your employer offers an HSA, you can also receive employer contributions.
While many HSAs feature money market accounts with fairly low yields, you aren't limited to those . It's possible to use your HSA to invest in and and to use and exchange-traded to get the job done. You can even hold a few more exotic in an HSA.
It is important to realize that your HSA isn't FDIC-insured, even if you open it at a bank.
In many ways, the HSA is a like an . If you withdraw money from the account for non-medical reasons before age 59 1/2, you are subject to a 10% IRS penalty, and you have to pay on your distributions. Once you reach age 59 1/2, you can withdraw money for non-medical reasons, but you pay on the distributions -- just as you would with an .
You don't have limits on withdrawing the at any time with an HSA.
Contribute To An HSA By April 15
Also, like , if you are looking for a tax deduction for 2012, you have until April 15, 2013, to make a previous-year contribution to your HSA.
In order to make your previous-year contribution, make sure you indicate the for which the should be applied. You can only claim your deduction once
Even if you are no longer eligible for an HSA in 2013, but you still have room to an HSA for 2012, you can make a previous-year contribution. You have until April 15 to make that contribution.
This strategy can be a good way to reduce your income for the previous if you are looking for another tax benefit. Your deduction probably won't make a big difference by keeping you out of the next . However, if you are on the verge of phasing out for some income-related deductions and , reducing your income to keep you below the phase-out level can be a great help.
If you have already filed your and want to include an HSA contribution for the previous , you need to file an amended return to take advantage of HSA contributions made before April 15.
The Answer: If you are looking for another tax deduction, and you were eligible for an HSA in the previous , you can contribute by April 15 and mark it a prior-year contribution. Check your eligibility, and consider the advantages of the truly tax-free growth available with an HSA.