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April 22, 2010
Health Savings Accounts Are the New IRAs
Health Savings Accounts share certain benefits with IRAs, and offer more health-related savings. Money you contribute to a Health Savings Account (HSA) grows in your account free from federal taxes, and most state taxes. HSA funds also remain free from federal tax when you withdraw them to pay for qualified medical expenses. If you withdraw HSA funds for non-medical expenses, you pay taxes on the amount withdrawn.
If you use HSA funds before you’re 65 for non-medical expenses, there is a ten percent penalty, which is similar to IRA rules. Once you’re 65, you can withdraw your HSA funds penalty-free for any reason, but you still pay income tax on the money withdrawn.
Because your HSA deposits that are not used to pay medical expenses grow without being taxed, Health Savings Accounts offer an advantage over many other forms of savings accounts. HSA investments can be placed in bonds, mutual funds, traditional savings accounts, or stocks.
To learn more about how Health Savings Accounts work, visit out website at http://www.Health--Savings--Accounts.com or call us toll-free at 866 749-2039. You can get assistance from our friendly and knowledgeable Personal Advisors, all of whom are licensed insurance agents. We can help you cut through the clutter, and find the plan that is best for you. We can assist you with the application, and keep you informed while it goes through the approval process. You’ll be able to discuss any questions with your Personal Advisor for as long as you remain a client.
Posted by Wiley Long at April 22, 2010 01:13 AM