A Health Savings Account, also known as an HSA, is a special type of account for those enrolled in a high-deductible health insurance plan. The beauty of HSAs are their powerful tax advantages, but there’s so much more to them than that.
There are two options for opening an account. You can open one through your employer or open one yourself, assuming you qualify.
No matter which route you decide to take you can expect the following benefits from your account.
The tax advantages of an HSA are threefold: account contributions are tax deductible, account growth is tax-free, and qualified withdrawals for eligible expenses are also tax-free.
Come tax time having an HSA can lower your tax bill because you’re effectively reducing your taxable income by the amount contributed to your account that year.
Your account balance rolls over year to year so you’ll never have to worry about losing any of your savings. It’s important to note that once you’re over the age of 65 and enrolled in Medicare, you can’t continue contributing to an HSA. The money in your account can still be used for qualified expenses, however.
Need an HSA? We can help! Our Health Savings Accounts are a smart way to pay for qualifying medical expenses.
Learn more at https://corebank.com/personal/hsa/
Disclosure: Core Bank does not provide tax advice. This material is for informational purposes only and is not intended to provide and or be relied on for tax advice. Please consult your tax advisor before making any tax-related decisions. Visit www.irs.gov for more information.