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March 04, 2010
Health Savings Accounts Help If You Lose a Job or Retire
A Health Savings Account (HSA) can do more for you than help pay for health-care expenses with tax-free dollars. It also helps to bridge gaps in health insurance coverage if you lose your job, or when you retire.
If you're under 65, you can open a free Health Savings Account when you buy a qualified high-deductible health insurance plan. You can keep your HSA even when you're covered with other insurance policies if you don't have medical expenses paid by both insurance and your HSA, called "double dipping."
Employers may offer flexible spending accounts for medical expenses that allow employees to set aside pre-tax dollars for medical expenses not covered by the company's health insurance, including premiums and deductibles. While you own and control your Health Savings Account, a Flexible Spending Account is controlled by your employer. That means you lose all the money in your Flexible Spending Account if you leave that employer.
A Health Savings Account is yours to keep if you lose your job, change jobs, or retire. Your HSA will still be there for you to pay medical expenses whether you have a job or are unemployed. Your HSA can act like a "safety net" while you’re looking for work, or during those common 90-day trials on new jobs before benefits begin. All the while, your HSA balance grows with tax-free interest just like an Individual Retirement Account (IRA). Remember that Flexible Spending Accounts do not earn interest. Find out how a Health Savings Account can save you money at www.health--savings--accounts.com, or call our experts at 866-749-2039. They’ll answer your questions at no charge.
Posted by Wiley Long at March 4, 2010 11:19 AM