Employers increasingly are shifting more health-care costs to employees, so keeping the same plan could have a different result. The annual premium employees are on the hook for has risen 75 percent over the past 10 years, according to the Kaiser Family Foundation. More workers also must now cover a deductible.
For starters, check out other plans offered by your employer, including a high-deductible health plan with a health savings account, which offers triple tax advantages. (Contributions you make to your HSA are tax deductible or pretax, your balance accrues interest tax free, and your withdrawals are free of taxes as long as you’re using the money for qualified medical expenses.)
In 2018, you can contribute up to $3,450 to your HSA if you have single coverage or $6,900 for family coverage. Savers 55 and older can contribute an additional $1,000.