Health Savings Accounts are still a great investment.

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With the implementation of the Affordable Care Act taxpayers are choosing among bronze, silver, gold and platinum plans and while platinum plans have no deductible the more affordable plans can have high deductibles. making them compatible with a Health Savings Account (HSA). High deductibles for 2016 are 1300 for individuals and out of pocket maximum is 6550. For a family plan a high deductible is 2600 and out of pocket maximum is 13,100. If your plan qualifies you may make a deductible HSA contribution of 3350 for an individual plan or 6500 for a family plan. Unlike similar above the line deductions this does not phase out for high earners. However you do not qualify if you have another insurance that is not a high deductible plan and you can't contribute to an FSA and an HSA in the same year.

Contributions to an HSA are much like an IRA. The "above the line" deduction is taken from your adjusted gross income and not on Schedule A where it may be limited. Investments are allowed to grow tax free and distributions for qualified medical expenses are not taxable. Taxpayers may therefore use an HSA to pay ongoing medical bills and accrue income on the unspent balance. After reaching medicare age funds may be withdrawn, but early distributions that are not for qualified medical expenses are subject to a 20% penalty.

There is still time to take advantage of the deduction for 2016: Contributions for 2016 tax year may be made up to April 18, 2017.

Emily Acevedo