Here's Why So Few People Use the Best Tax Break on the Books
Everybody likes saving money on their taxes. That makes it somewhat surprising that one of the best and biggest tax breaks currently allowed under the Internal Revenue Code isn't much more popular than it is.
That tax break comes from health savings accounts. Unfortunately, there are factors that keep millions of taxpayers from ever taking advantage of them. As useful as health savings accounts can be, they come with some challenges that not everyone can overcome. Below, we'll look at the biggest reasons why HSAs don't get used.
Health savings accounts allow eligible people to contribute up to certain dollar limits each year. Those contributions are tax deductible, and any earnings are tax-free on withdrawal if you use the money for qualifying healthcare expenses. However, to be eligible, you need to have a health insurance plan that has a certain minimum deductible before coverage kicks in.
Source Fool.com
