What are the benefits of an HSA?
HSAs offer tax savings in three different ways providing you with more spendable income, regardless of your income level. Individuals may save money tax-free and build assets that they can use in their retirement years; and/or reduce their medical costs right now. Note: State tax treatment may vary depending on the state. Consult your tax advisor.
- HSAs afford you several tax advantages:
- Tax-free contributions
- Tax-free growth
- Tax-free distributions for eligible medical expenses
- You “own” the account:
- Balances roll over from year to year, there’s not a “use or lose” requirement
- Even if you change jobs, change medical coverage, become unemployed, move to another state, or change your marital status, your HSA goes with you!
- Flexibility:
- HSA dollars may pay for eligible medical expenses as defined by the Internal Revenue Code. Eligible medical expenses would include deductibles, co-payments, dental, vision expenses, or doctor appointments, as long as these expenses are not covered by other insurance.
- Retirement Savings:
- Once you reach the age of 65, you can withdraw your HSA funds for non-medical purposes as needed in retirement - you will only need to pay income tax on the withdrawals.