Did you know that you could be saving hundreds of dollars with an HSA? Let me share with you three reasons why you should make the switch today....
It’s open enrollment season and this is your chance to save hundreds! I know the world of insurance can sometimes be confusing and often intimidating with all the acronyms and terminology, but today I want to help you learn how an HSA, or health savings account, will help you save your precious dollars and invest in your future! Here’s why you should switch to an HSA-eligible plan for the year 2023!
AN HSA WILL LOWER YOUR TAXABLE INCOME
Money you contribute to your HSA is considered tax deductible, meaning it isn’t counted toward your taxable income. In simple terms, you pay less taxes.
Think of it this way, if your tax bracket is 15% and you contribute $100 a month to your HSA, then by the end of the year you will have set aside $1,200 and saved $180 in taxes (because 15% of 1,200 is 180). Imagine how that could add up over the years!
It also helps you to save on medical expenses because you can use HSA dollars on things your plan won’t cover such as eyeglasses, dental care, copays, coinsurance, and even your deductible! Also, any eligible medical supplies you spend your HSA money on, are purchased at a discount because you are using money that hasn’t been taxed.
Here at the Depot, we’re your one-stop-shop for medical supply needs! Everything in our store is HSA eligible, so stop in and experience first-hand those HSA benefits!
YOUR HSA IS OWNED BY YOU
This is significant because your money stays your money. If you change employment, your HSA follows you. If you switch to a new plan, your HSA funds are still yours. What you save will stay safely in your hands.
Another great feature is that your money won’t disappear at the end of the year. So, you can keep it stored away for as long as you want to! It’s not “use it or lose it.”
HSAs ARE A GREAT WAY TO INVEST AND SAVE FOR RETIREMENT
Before the age of 65, there is a penalty associated with using your HSA on ineligible expenses. However, after 65 the penalty is lifted. That means you can use your carefully saved funds to enjoy retirement a little more. It is important to remember, though, that you will still need to pay income taxes on the money spent on ineligible items, just as you would any other retirement plan.
You also get to earn tax-free interest on your HSA and can invest it too, making your money work even harder!
I hope that you can see all the wonderful benefits of having an HSA! I highly recommend getting one today! Sometimes it can feel a little risky to take on the required high deductible plan, but in my next post I’ll talk a little more about why the big payout is worth the risk. Stay tuned!
Do you know any other HSA benefits? Let me know in the comments!