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December 05, 2011
Health Savings Account Versus Retirement Account
Health Savings Accounts are usually recommended for tax deductions. The high-deductible health plans that work with them are commonly known for low premiums, as well, but another advantage is less well known.
Health Savings Accounts have a lot in common with IRAs, such as annual contributions can grow with tax-free earnings. Those contributions are also tax deductions. One difference between the two is that HSA money is always available to pay for personal or family health care, while IRA money is only available after you are 59-and-a-half.
You can get a larger tax deduction with an IRA, but Health Savings Accounts permit many investment options similar to IRAs, like bonds, mutual funds and stocks. An important difference between an HSA and an IRA is that HSA investments can be left in place long after you retire.
With the ever-growing cost of medical intervention, Health Savings Accounts fit modern needs with liquid assets readily available to cover health care for you and your family, while allowing you to build a retirement account at the same time. You'll find extensive resources here with us to explain how to make the most of your own Health Savings Account.
Posted by Wiley Long at December 5, 2011 02:30 AM