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December 09, 2010
How You Can Benefit From Having Your Own Health Savings Accounts
A health savings account (HSA) is basically a tax-free way to save. You may be thinking that's what an IRA is, but an HSA is specifically used for healthcare expenses. Paying for healthcare through your HSA makes these costs tax-deductible for self-employed account owners.
Any funds you don't need for healthcare continue to grow with tax-free interest until you turn 65. Then you may withdraw funds to use on whatever you like. Until you are 65, you'll face penalties if you use HSA funds for anything other than qualified healthcare.
An HSA is combined with a qualified high-deductible health insurance policy that covers large medical bills. You use your HSA for healthcare expenses until that deductible has been met.
If you are under age 65 and have a qualified HSA insurance plan, you can open an HSA. You will not be considered eligible by the insurance company if you are covered by another health insurance policy that is not a qualified high deductible plan, though.
To learn more about the benefits of an HSA, please visit www.health--savings--accounts.com
Posted by Wiley Long at December 9, 2010 10:33 AM