Health Savings Accounts: Possibly your best tax shelter

Health Savings Accounts are probably your best tax savings strategies.  If you have qualifying, HDHP health insurance, you can deduct your contribution, of up to $3,350 (family coverage, $6,750).  Many people over 55 can contribute an additional $1,000.     Distributions from your HSA, used to pay medical expenses incurred after the account is opened, are tax-free.  Distributions for non-medical purposes are taxable income and subject to a penalty.  After age 65, distributions continue to be tax-free for medical expenses, but there is no penalty if you use the fund for another purpose.   (March, 2017)