HSA Becomes More Attractive in 2013

Starting in 2013, Health Savings Accounts (HSA’s) become a lot more attractive due to a couple changes that take effect this year which are part of the new health care reform law (PPACA). 1.  Flexible Spending Accounts (FSA’s), which are “use it or lose it” type of account, are now capped at $2500 (down from the current $5000 limit) 2.  The percentage level where you can itemize your out of pocket expenses on Schedule A for medical, dental and vision expenses increases from 7.5% up to 10% of your adjusted gross income (AGI) Both of these new rules hit the middle class...

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