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Let’s talk Health Savings Accounts 
If enrolled in a high deductible health plan you have the option to enroll in a HSA
An HSA allows you to make tax free contributions to an account specifically for healthcare spending.
IMO, the account serves two purposes:
A THREAD:
If enrolled in a high deductible health plan you have the option to enroll in a HSA
An HSA allows you to make tax free contributions to an account specifically for healthcare spending.
IMO, the account serves two purposes:
A THREAD:
1.) An opportunity to save tax-free for medical emergencies
With a HDHP, you have a higher deductible and so it helps to have a bit of extra cash in a dedicated account to support any medical emergencies.
With a HDHP, you have a higher deductible and so it helps to have a bit of extra cash in a dedicated account to support any medical emergencies.
2.) An opportunity to invest using a #TripleTaxFree advantage
The funds in an HSA can be invested, much like a retirement account, tax free.
The funds in an HSA can be invested, much like a retirement account, tax free.
Unlike a Roth or Traditional retirement account, however, these funds are tax free on the way into the account, are able to grow tax free, AND are able to be withdrawn from the account tax free.
The withdrawal must be to cover a qualified medical expense. A strategy to optimize your investment may be to pay out of pocket for medical expenses and allow the principle of your HSA to continue to grow with compound interest, while saving the medical expense receipts.
Once you’re ready to cash out of your HSA (all at once or every so often), you can submit a claim using the medical receipts and receive your money tax free.
This is why I love HSA as a retirement vehicle
This is why I love HSA as a retirement vehicle
