« An HSA Can Be Just What Small Business Owners Need | Main | Health Savings Accounts Used By More U.S. Citizens »
June 08, 2011
How Can Health Savings Accounts Help Build Your Retirement Savings?
Compared to a flexible spending account, having a Health Savings Account or an HSA plan can help build your retirement fund and decrease your taxes. Much like a IRA, the money you place in your Health Savings Account grows fast with tax-free interest.
To juice up your retirement savings, try not to touch your HSA funds as much as possible. If you do need Health Savings Account for health care, you can withdraw funds and not even have to pay tax on what you take out as long as you use it for qualified medical expenses. That includes a long list of health-related things like going to the dentist or seeing an herbalist. You can use your HSA for health care for your spouse or kids, too.
One of the best things about having an HSA is that that unused funds roll over at yearend. You never lose the balance like you do with a flexible spending account. To set up an HSA, you'll need a certain kind of high-deductible health plan. These HSA plans must have a minimum deductible of $1,200 for self-only coverage or $2,400 for family coverage.
On our website, it's quick and easy to see rates for HSA-qualified insurance plans. Plus, you can read about how much you can save with an HSA plan. See how to start your own HSA today with our educational resources on selecting an insurance plan and an HSA administrator.
Posted by Wiley Long at June 8, 2011 08:48 AM