Advantages of Health Savings Plans
It's important to weigh the advantages when choosing an HSA. The following is a list of benefits to consider when thinking about enrolling in a Health Savings Account:
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Ownership - Funds remain in your account year-to-year like an IRA. There are no "use it or lose it" rules for HSAs.
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Deductions - Individual contributions are allowed as a deduction even if you don’t itemize; employer contributions are excluded from income and wages.
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Savings - You can save the money in your account for future medical expenses and grow your account through tax free investment earnings.
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Flexibility - You can use the funds in your account to pay for current
medical expenses
that your insurance may not cover, or save the money for future needs such as:
- Health Insurance or medical expenses if unemployed - Medical Expenses after retirement (before Medicare) - Long-term care expenses and insurance - Medicare premiums
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Affordability - You should be able to lower your health insurance premiums by switching to higher deductible coverage.
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Security - Your high deductible insurance and HSA protect you against high or unexpected bills.
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Control - You make all of the decisions about:
- How much you put in the account - Whether to save the account for future expenses or pay current medical expenses - Which medical expenses to pay for with the account - Which company will hold the account - Whether to invest any of the money in the account and which investments to make
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Portability - You can keep your HSA even if you: change your job, change your medical coverage or become unemployed.
Take a few minutes to review a self-paced
Online Briefing
on HSAs.
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