Health savings accounts (HSAs) are one of the most effective options to save money for healthcare expenses and retirement, but many accountholders don’t take advantage of all the benefits. Some of your employees may already have good HSA habits, but understanding more about how to use them can help make a good HSA program a great one. Here are 7 tips to help employees win with their HSA:
Health savings accounts (HSAs) are one of the most tax-advantaged1 accounts that the IRS recognizes. Other retirement accounts are taxed at some point — whether that’s when the funds go into the account or when the funds are taken out — but HSAs have triple-tax advantages (as long as the accountholder follows the rules set up by the IRS) that other programs just don’t have.
Note: This is the first of a three-part series. Look for future posts on growing your HSA funds and distributing (or spending) your HSA funds.
Health savings accounts (HSAs) are one of the most tax-advantaged accounts allowed by the IRS, and every year more people are discovering the benefits of an HSA. In addition to helping people save for current healthcare expenses, HSAs can be used to save for retirement as well.
Because HSAs provide major tax advantages to accountholders, the IRS has created certain rules that govern how accountholders can contribute to their HSAs.
The following are some of the important things you need to know about contributing to an HSA:
As we discussed in a recent blog post, proposed legislative changes could almost double the amount health savings account (HSA) owners are allowed to contribute annually. Financially-savvy individuals have been using their HSA as an option to supplement their retirement savings for years. An HSA has certain tax advantages that an IRA or 401(k) does not. In this post, we will discuss a few ways that an HSA can be used to create future savings.
HSAs: The common ground
While lawmakers struggle to come to an agreement on healthcare, one thing remains clear: Health savings accounts (HSAs) have a major role to play. Provisions being considered would strengthen HSAs now and make them an even more effective way for individuals to prepare for the burden of healthcare expenses in retirement.1