Maximizing the Benefits of HSAs: A Guide to Open Enrollment

Health savings accounts (HSAs) are a powerful yet underutilized financial tool that individuals can take advantage of during open enrollment. HSAs, available to those enrolled in high-deductible health plans, offer a triple tax advantage: contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are also tax-free. By investing HSA funds, individuals can maximize the account's potential as a retirement savings vehicle. Financial advisors recommend contributing as much as possible and keeping enough cash on hand to cover deductibles while investing the rest. HSAs provide flexibility, allowing individuals to reimburse themselves for medical expenses at any time without tax or penalties. However, it's important to consider personal circumstances and health-care needs before opting for an HSA.