What Can You Do with HSA?

Health Savings Accounts (HSAs) are a powerful tool that can help you save money on healthcare expenses while providing tax advantages. There are several things you can do with an HSA to maximize its benefits:

1. Save for Future Medical Expenses: You can contribute money to your HSA tax-free, and the funds can be used to pay for qualified medical expenses, including deductibles, copayments, and prescriptions.

2. Invest Your HSA Funds: Some HSA providers offer the option to invest your funds in stocks, bonds, or mutual funds, allowing your money to potentially grow over time.

3. Use HSA for Retiree Health Expenses: Once you turn 65, you can use your HSA funds for any purpose penalty-free, although non-medical expenses will still be subject to income tax.

4. Pay for COBRA Premiums: If you lose your job and elect to continue your employer-sponsored health coverage through COBRA, you can use your HSA funds to pay for the premiums.

5. Save for Long-Term Care: You can use your HSA funds to pay for eligible long-term care expenses, providing a tax-advantaged way to prepare for future healthcare needs.

Health Savings Accounts (HSAs) are not just savings accounts; they are a powerful way to protect your finances against unexpected medical expenses, all while enjoying tax benefits. Imagine being able to save money without the usual tax bite!

1. Save for Future Medical Expenses: Contributions are tax-deductible, and you can use the funds for a wide array of qualified medical expenditures like dental work, vision care, and health insurance deductibles. This means you can pay less out-of-pocket when you need care the most.

2. Invest Your HSA Funds: Many HSA providers allow you to invest your contributions in vehicles such as stocks or mutual funds. This investment opportunity can lead to significant growth over time, enhancing your financial health.

3. Use HSA for Retiree Health Expenses: After turning 65, HSAs become even more flexible. You can utilize your funds for non-medical expenses without a penalty, although do keep in mind that you'll have to pay taxes on those withdrawals.

4. Pay for COBRA Premiums: Should you face job loss, HSAs can be a safety net, allowing you to use your funds to help cover the cost of COBRA premiums and maintain your health coverage during a transitional period.

5. Save for Long-Term Care: As you think about the future, an HSA can help with long-term care expenses too. Your contributions can provide peace of mind and financial assistance for healthcare needs as you age.