Health Savings Accounts (HSAs) offer a triple tax break, with contributions being pre-tax, tax-deferred growth, and tax-free withdrawals for qualifying medical expenses. To maximize the benefits, it is recommended to pay medical bills out of pocket and use the HSA funds for investment and retirement savings. Employers typically provide an HSA card for medical bill payments, but reimbursement is also an option. HSAs can be invested, and if you wish to transfer your account, compare fees, minimum balance requirements, and investment options. In another topic, if you were named as the beneficiary of I Bonds, you can have them reissued in your name alone through TreasuryDirect.
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.
