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Improving Your Financial Life

Blog > 2014 > October > Lower Your Blood Pressure with HSAs
October 28, 2014

Lower Your Blood Pressure with HSAs

We have experienced rising medical costs. Our stress levels get high. And our blood pressure peaks. How can we pay for medical expenses and still save money? What options do we have? The simple answer is opting into a Health Savings Account (HSA).

You may be asking yourself what is an HSA. An HSA is a tax free savings tool covering medical, dental and other expenses. What is the catch? HSA have no catch. You do have a responsibility to keep up with any HSA governmental changes and understand the account details. And you are responsible the different HSA options to choose from.

What do HSAs provide for me?

HSAs offer a triple tax-free benefit. How?!?! HSAs are not retirement plans. They are considered “trusteed” like IRAs under Internal Revenue Service (IRA) rules. HSAs offer these tax-free benefits:

  • Pretax benefits of an IRA
  • Tax-free withdrawals of a Roth IRA
  • Tax-free growth benefits of both

Now you are thinking what other HSA benefits are out there. Here a few more below.

  • HSA funds roll over from year to year. There is no “use it or lose it” clause.
  • HSA funds (depending how set up) can be in cash, mutual funds or other investments.
  • HSA accounts are not tied to your employer. As long as your health plan meets the deductible, you can open one anywhere.

If you have any questions regarding HSAs, please check out Financial Center’s HSA plans. Or you can learn more about setting up HSAs as an employer.

Category: Money Smart, Tags: HSAs
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