If your insurance plan qualifies for an HSA or Health Savings Account, there are a number of benefits to establishing one. Unfortunately, there is so much industry-speak involved in reading up on these accounts, it can be difficult to understand the actual benefits. Here are 3 major reasons to use a Health Savings Account.
- Tax Deductible – Any contributions made are either with pre-tax dollars if taken by the employer or are tax deductible if made with after-tax dollars. Either way, they bring down your adjusted gross income and save you money. Then, when the money is needed for a medical expense later, you can use the funds plus any accumulation, tax-free.
- Reduce Healthcare Costs – By using an insurance plan which utilizes an HSA, you will almost always have lower premiums than other available options. You can then take the amount saved monthly in premiums and put it into