1. If you haven’t reached your HSA contribution limit for the prior year, you can lessen your tax burden by adding to your HSA right up until you pay your taxes. NOTE! Your account must have already been opened in the prior year.
2. The money you put into your HSA is 100% tax deductible! (Okay, is there anyone out there that wants to give more money to the IRS?)
3. You NEVER pay taxes on your HSA money as long as you use it for qualified medical expenses.
4. You can reimburse yourself for qualified medical expenses any time you want. For instance, let’s say you pay your qualified expenses with your American Advantage credit card to earn those airline miles. When you’re ready, you can reimburse yourself from your HSA account. No rush or deadline, but keep those medical receipts in a safe place.
5. Most HSAs offer the ability to invest, like a 401(k). Unlike a 401(k), there’s no required minimum distribution – in other words, you don’t have to take withdrawals at 70 ½ years old. So, maybe you want another investment option for retirement. You may be surprised to learn that many people use HSAs in this way. Pretty smart, actually. HSA’s can help keep retirement plans in place!
6. If you start an HSA when you’re younger, you can look forward to a nice birthday present on your 65th birthday! Use your fund to pay Medicare Premiums for Part A, B and D…tax free because this considered a qualified healthcare expense.
7. Unused funds roll over from year to year, so it’s NOT a “use it or lose it” account (like a Flexible Spending Account).
8. It is YOUR money, even if your employer contributes. Even if you leave your job and enroll in a non-HSA compatible insurance plan, you can still use your HSA money. Note that you can’t contribute to your account if you’re no longer enrolled in an HSA-compatible insurance plan.
9. You can use your HSA funds to pay for dependents’ qualified expenses – and it’s still tax free even if they’re not on your health plan. Yep, it’s true.
10. You can use your HSA money for vision and dental expenses, so go get those braces and/or a vision correction surgery.
There are many more reasons so be sure to visit with us soon!