Is HSA Right for You?

What is a Health Savings Account?

An HSA is a personal pre tax savings account designed to help individuals pay for qualified medical expenses such as:

• Copays,

• Prescriptions,

• Dental care,

• Eyeglasses,

• Other healthcare costs.

  
  

Tax Advantaged

The account has a triple tax advantage, meaning contributions reduce your taxable income, the funds grow tax-free, and withdrawals for qualified medical expenses are also tax-free, giving it a triple tax advantage.

The only account in the U.S. tax code that provides three tax benefits. Tax-free contributions, tax-free growth, and tax-free distributions.

Unlike Flexible Spending Accounts (FSAs), HSA funds roll over year to year and are not subject to the “use or lose it" rule.

Easy to use

HSA funds are accepted by thousands of retailers including Walmart, Target, and CVS pharmacies. You can use HSA funds to cover medical and dental copays or bandages and painkillers. HSA funds can be carried over into retirement to cover the cost of Medicare. That’s like bonus retirement savings. 

HSA funds can even be used for Massage.

Do I Qualify?

To qualify for an HSA, you must have health insurance. Your health insurance must be high-deductible, high-premium (HDHP) These plans tend to be more costly. While it is not recommended that a taxpayer choose a HDHP plan if a better alternative is available. It may make sense to choose a HDHP insurance for one tax year with the goal of establishing and funding an HSA account. Then choose a more suitable health plan while HSA funds grow tax free. Once you open the account it's yours regardless of your current health plan.