Are HSA Health Savings Accounts right for everyone?
HSAs or Health Savings Accounts are a smart, new alternative
to traditional health insurance coverage.
How Does a HSA Work?
HSA Accounts allow you to save tax-free money for your healthcare
expenses.
- Any money you invest in your HSA Plan will be tax-deductible.
- If you withdraw cash from your plan to pay for qualified
healthcare expenses, your withdrawals will also be tax-free.
If you’re younger, healthier, have few medical expenses
and are tired of the high cost of your insurance plan’s
premiums or its restrictions, then a Health Savings Account may
be the health plan for you.
Essentially, an HSA plan is an individual retirement account
for your healthcare needs. You’ll be able to contribute
up to $2,650.00 if you have an individual HSA Account or $5,250.00
if you have a family plan HSA. It’s a nest egg that can
even be invested to earn extra income!
4 Advantages of Having an HSA Health Savings Account:
- Your HSA Account will be portable and will follow you from
job to job.
- You’ll get to make pre-tax contributions to cover your
healthcare costs.
- Your tax-free contributions may be invested, and the earnings
from your investments will be tax deferred.
- The cash in your HSA Health Savings Account will be rolled
over at the end of each year, making it possible for you to
build up an account worth hundreds of thousands of dollars.
An HSA Account Might Not Be Right for You:
- If you don’t think you’ll be able to put aside
enough cash to fund your HSA.
- If you won't be able to afford the high deductibles of the
accompanying health insurance—then it might be better
for you to go with a traditional medical plan.
- If you’re chronically ill or tend to spend more on
healthcare costs each year than then a HSA health savings account
will pay for.
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