While a relatively new program, health savings accounts have been around for 10 years now. If you are not yet retired and are still working, you may want to take advantage of a HSA if your employer offers one. Here are some reasons why a health savings account is important.
All of the money that you contribute to your HSA is taken out of your income before your taxes are computed. Since your healthcare costs are likely rising, a HSA can both help you pay for those added medical bills as well as reduce your tax responsibility.
You may be missing out on money and not even know it. Many employers give incentives for contributing to an HSA. These incentives are usually in the form of donations directly into your account. They also will add health incentives for doing things like taking healthcare quizzes or meeting certain dietary or exercise goals. Check into what your employer may offer in the way of incentives for your HSA, you might be pleasantly surprised.
Savings for Long Term Care
While there is a yearly limit on the amount that you can save in an HSA, there is no absolute maximum. This means that while you may not need the money you are putting away right now, you can save it for when you do need it. HSA’s also operate like 401k accounts and will collect interest as the money matures.
If you have any legal questions or issues dealing with healthcare or healthcare costs, contact the experts at Stano Law group today!