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March 23, 2010
Health Savings Accounts Can Help You Save for Retirement
Health Savings Accounts have more benefits than flexible spending accounts, and can help you save for retirement. A Health Savings Account (HSA) earns tax-free interest like an individual retirement account (IRA). That helps your balance grow faster than funds in a flexible spending account, which does not earn tax-free interest.
Withdrawals from a HSA to pay for qualified medical expenses are tax-free, and most contributions to a HSA are tax-deductible. According to the federal government and all but four states (Alabama, California, New Jersey and Wisconsin), contributions to a HSA are not counted as income to the recipient. Employers can also contribute to employees’ accounts.
To set up a Health Savings Account, you need to buy a high deductible health insurance policy. In exchange for a high deductible, your monthly premiums cost less than premiums of other insurance plans. That’s because insurance companies do not have to pay for numerous small charges they would cover in other policies.
If you’d like to take advantage of these HSA benefits, and learn about their other benefits, you can learn more at www.Health--Savings--Accounts.com, or call us at 866-749-2039. Our expert advisors will answer your questions at no charge.
Posted by Wiley Long at March 23, 2010 10:14 PM