A Health Savings Account or HSA is designed to reduce your overall health care costs. An HSA is a tax free savings account where you are able to deposit money to cover current and future medical expenses. As long as you spend the savings on a qualified medical expense, the money is free from federal income tax. This would include things like routine health checkups, doctor’s visits, and etc. Personally, I really like the HSA and I save a little every month, just so I know I have it “in my back pocket.”
One of the other benefits of the HSA is that they are portable. Keep in mind that the HSA account is owned by you and not tied to any insurance company or plan. So, when you leave your employer, the HSA comes with you, sort of like a 401k.
Lastly, HSAs work well with high deductible plans that have lower premiums. So, instead if having to use post tax dollars to cover something like a prescription or a simple check up, you can now use your HSA. Those of you who are self-employed should seriously consider the benefits of having a HSA. I don’t see where you can go wrong with an HSA as they eventually come in handy when you need to pay for medical expenses.
Please post your comments regarding your experience with HSAs.
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