Why should I have an HSA Account?
A Health Savings Account can give you more control over your
healthcare decisions than you’ve ever had before! HSAs
are a new type of tax-free savings account that is paired with
a high-deductible health plan (or HDHP) to provide you with a
more flexible insurance option.
HSAs – A Cost-Effective Insurance Choice
HSA Accounts have to be set-up in conjunction with a qualifying
high deductible health insurance policy, and such plans typically
cost less than traditional health plans. This makes HSAs an exceptionally
cost-effective insurance option.
6 Ways You Can Benefit From a Health Savings Account
1. Save Money on Your Taxes:
- Deposits to your health insurance account will be 100% tax
deductible. IRS qualified HSA contributions can be deducted
from the gross income column of your tax return, even if you
don’t itemize your deductions.
- Most states will also allow that same deduction on your state
income tax form.
- You’ll be able to make tax-free withdrawals from your
account to pay for healthcare expenses covered by your HDHP.
- You’ll also be free to make additional tax-free withdrawals
if you need to pay for medical expenses that aren’t covered
by your health plan, like Lasik, dental work, vision care,
maternity related expenses and even qualifying long term care
premiums!
2. Your HSA Account Will Earn Interest:
- The money that accumulates in your Health Savings Account
will grow as it earns tax-deferred interest.
3. Reduce Your Health Insurance Premiums:
- Your health insurance premiums will usually be 20%-40% lower
when you switch to a high-deductible health plan.
- You’ll be able to use the savings to continue to fund
your HSA Account.
4. Take Your HSA Account With You:
- Even when you change jobs, the funds in your HSA Account
will go with you.
- You’ll actually own your own HSA Plan!
5. You Control Your HSA:
- You’ll have more control over your healthcare expenses.
You’ll be able to use money from your HSA to pay any
healthcare provider, without being weighed down by restrictions.
- You, not your employer, own your HAS. You will be free to
take it with you whenever you change jobs.
6. Your HSA Account Will Have Long-Term Growth and Savings
Potential:
- You can let the cash in your health savings account grow
at a tax-deferred rate.
- Once you reach age 65, you’ll be able to make withdrawals
from your HSA Account for any reason without being penalized.
- Your HSA is the only health insurance plan that can actually
make you money! In most cases once there’s $100.00 in
your HSA, you can begin to invest in stocks, mutual funds,
etc.
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