Health and Wealth Planning For The Future
A Health Savings Account is a tax-advantaged account that allows an individual to accumulate funds to pay for current and future medical expenses. Contributions into an HSA are tax deductible, earnings grow tax-deferred, and when used to pay for qualified medical expenses, distributions are not taxed.
Combining the cost efficiencies of a High-Deductible Health Plan (HDHP) with a deposit and investment account, HSAs give individuals and families an opportunity to accumulate funds to manage healthcare expenses today and into retirement.
Advantages of an HSA
Triple Tax Savings
- Contributions are tax deductible
- Account earnings grow tax-deferred
- Withdrawals are tax free when used for qualified medical expenses
Account Holder Control and Flexibility
- Debit cards make it easy to pay for qualified medical expenses
- Money in the account can be used now or in the future
- Contributions are voluntary (up to the yearly maximum)
- Account holders manage the investing of their HSA funds
- No income limits or employment requirements on who can contribute
- Funds can be rolled over from another HSA and/or MSA
No “Use It or Lose It” Penalty
- The funds remain in the account from year to year
- Funds can be spent, saved or invested
- No required minimum distributions
The HSA Remains with the Account Holder
- In the event of a job loss or change
- Regardless of the insurance provider