What is an HSA?
An HSA works with a health plan that has a high deductible. You can save money in an HSA account before taxes, and then use the funds to pay for eligible healthcare expenses.
HSAs can help you save for retirement. When you use HSA funds, you can pay for general living expenses without penalty.
Lower Monthly Premium
Because HSAs work with a high deductible health plan, you have a lower monthly premium. You can take the difference and invest that!
You don’t pay any taxes on the money that you put into an HSA. For example, if you put the maximum amount ($3400 for an individual or $6700 for a family) into your HSA each year, and you’re in the 28% tax bracket, you would save $952 in taxes as an individual, or $1890 for your whole family!
You also don’t pay taxes when you take money out of your HSA to pay for eligible health-related expenses.
You can earn interest on your HSA! In many cases, you can invest a portion of your HSA funds if you maintain a minimum balance in your account. The money that you invest into mutual funds, or stocks, for example, continues to grow—tax free!
This is why many people use their HSAs to save for retirement. Having a health savings account really helps you take control of your healthcare dollars.
Have you started your HSA?