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Benefits of a Health Savings Account
This is a sponsored post written by me on behalf of Visa.
Benefits of a Health Savings Account
We have a family of five and being self-employed (my husband and I both work together) means that we have health insurance with a pretty high deductible. Our out-of-pocket expenses for doctor visits, prescriptions and other healthcare related items add up quickly. This is where our Health Savings Account (HSA) has been very helpful. Do you have an HSA?
We didn’t have one at first because I just didn’t understand the need for it. However, after learning more about what an HSA is and how it works, I immediately set one up for my family because honestly, it is really something that we can use and it is a great way to save for expenses that people don’t always budget for.
What is a Health Savings Account?
An HSA (offered with a qualifying high-deductible health plan) is a tax-advantaged savings account that allows you to set aside money to cover medical expenses throughout your lifetime. It is like an IRA savings account for your health. The money you put in the HSA is tax-deductible. Also, the money you withdraw isn’t taxed, as long as you spend it on eligible healthcare expenses. Plus, any interest earned on your HSA is also tax-free. And, after you turn 65, you can take out money from your HSA for non-healthcare related expenses penalty-free.
You can use money from your HSA to pay for eligible healthcare expenses including:
- Dentist: cleanings, orthodontia, dentures
- Exams: physicals, dermatologist
- Vision care: exams, new glasses, LASIK
- Medical equipment: blood pressure monitor, thermometers
- Chiropractor or acupuncturist
- Hearing exams and aids
- Smoking cessation programs
However, you cannot use funds from your HSA to pay for your health insurance premium — unless you’re unemployed.
In 2017, the maximum annual contribution to an HSA is $3,400 for individual (self-only) and $6,750 for family coverage. If you’re in the 25 percent tax bracket, that could give you annual savings of up to $850 for individual and $1,687 for family coverage.
Why You Should Get a Health Savings Account
Simply put, an HSA is like a personal savings account where the money can be used to pay for eligible healthcare expenses. You — not your employer or insurance company — own and control the money in your HSA. Any money in your HSA that you don’t use stays in the account and will rollover year after year and can earn interest every year tax-free.
An HSA offers you a triple-tax advantage – (1) Contributions to an HSA are tax-deductible, (2) Money withdrawn from an HSA to pay for eligible medical expenses is tax-free, and (3) You can earn interest on funds invested in an HSA tax-free!
With an HSA, you can pay for medical expenses now or you can continue to contribute and save the money for later either to cover an unexpected or expected large medical expense, or save for retirement. And, if your employer doesn’t offer an HSA, you can get it on your own!
Access your Health Savings Account funds with a VISA Healthcare Card
Did you know that you can access your HSA funds with a Visa Healthcare card? That’s right. One of the most convenient and secure ways to access funds in your HSA is with a Visa Healthcare card which allows you to pay for qualified healthcare expenses wherever Visa debit cards are accepted, making it easy to pay for expenses. So, remember to ask for a Visa Healthcare card when you get an HSA! To learn more, visit www.visahealthcare.com.
This is a sponsored post with VISA.