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January 17, 2008
Health Savings Account Money Year to Year
A Health Savings Account (HSA) is an amazing tool to reduce your healthcare expenses and insurance costs. But do you lose your money at the end of each year, like with a Flexible Savings Account (FSA)?
Thank goodness, no! You do not lose your HSA money at the end of each year.
Health Savings Accounts were created specifically to be BETTER than their predecessors, Flexible Savings Accounts (FSA) and Medical Savings Accounts (MSA).
Your HSA does not have to be used up within the year. In fact, the money can just build and build each year if you don’t need it. It will be there for your health crisis if that ever happens.
If you never have that health crisis (and I hope that’s the case for you!) then you will have a nice little nest egg built up of year-after-year health savings account investments plus the interest earned.
We really like the term "Health Savings Account." We like it because it says that you can save by being healthy. The healthier you are, the more money you’ll have left in your HSA when you retire.
And speaking of retirement, your HSA will act like a nice Individual Retirement Account (IRA) as soon as you reach age 65. You’ll be able to withdraw money without penalty for any reason you wish. (But you’ll still have to pay tax on withdrawal, just like with a traditional IRA).
Our advice to you is put the maximum amount into your HSA every year. The money will be there for you if you have a health crisis, and it will be there for you in retirement if you manage to stay healthy year-after-year.
Good luck with your healthcare, your health insurance and your HSA! If you are looking for more information on Health Savings Accounts, visit us online at: http://www.health--savings--accounts.com
Posted by Wiley Long at January 17, 2008 10:10 AM