How the New HSA Rules from the IRS Could Impact Your Tax Strategy

The IRS recently adjusted Health Savings Accounts (HSA) rules for 2025. If you've been using an HSA as part of your financial plan, now is a great time to revisit your strategy to ensure it's still working as well as possible. Understanding these new changes is a vital part of making sure you're maximizing your tax savings and the benefits of your HSA.

What's Changing with HSAs?

The IRS announced several updates in a recent revenue procedure that will begin affecting HSAs in 2025. These adjustments include changes to the contribution limits, which are expected to increase, and will give participants more room to save. The IRS may also make changes to the minimum deductible and maximum out-of-pocket limits for high-deductible health plans (HDHPs) that qualify for HSA contributions. 

These updates have the potential to present new opportunities or challenges, depending on your specific tax plan and unique financial situation. Whether you're brand new to HSAs or have been contributing for years, a working knowledge of how these new changes can affect you is a vital part of any great tax strategy.

Why Re-Evaluating Your HSA Matters

Health Savings Accounts are more than just a way to cover medical expenses; they're a powerful tool for tax savings and long-term financial planning. By contributing to an HSA, you can set aside pre-tax dollars to pay for qualified medical expenses, reducing your taxable income for the year. HSAs also offer the potential for tax-free growth on invested funds, which means they're a valuable part of any overall retirement strategy. 

With the IRS putting new rules into play, what worked for you last year may not be the best approach moving forward. It may be time to increase your contributions to take advantage of higher limits, or you may need to adjust your strategy to align with new deductible requirements.

How Your CPA Can Help

Navigating these changes can be complex, but that's where consulting with your CPA comes in. We know each client's financial situation is unique, and our tax planning services can help you make the most of these updates. Here's how:

• Personalized Tax Strategies: We'll review your current HSA contributions and overall tax situation to find the best way forward. We can guide you if you're looking to maximize contributions or adjust your investment approach within the HSA.
• Year-Round Support: Tax laws are constantly changing, and it can be challenging to keep up. Myrick CPA offers ongoing support, ensuring that you're always informed about the latest updates and how they affect your financial plans. We're here to help you adjust your strategy whenever needed.
• Integrated Financial Planning: Your HSA is just one part of your financial strategy. We'll help you fit your HSA plan into a broader financial approach that covers both immediate needs and long-term goals.

Take Charge of Your HSA Strategy Today

With the IRS's new HSA rules coming soon, now is the perfect time to reassess your strategy and make sure you're on the right path. The experts at Myrick CPA specialize in helping clients navigate these changes with confidence so that they can experience the maximum benefits.

Contact Myrick CPA to schedule a consultation. Let us create a tax strategy that works for you so you can focus on your financial future with total peace of mind.