Why Should You Set Up an HSA?
Life is full of surprises. Luckily, when it comes to your healthcare needs, an Health Savings Account (HSA) makes it easy to be ready now and in the future.
So what is an HSA?
Think of it as a tax-advantaged savings account that lets you set aside money to cover expected and unexpected medical expenses throughout your lifetime.
With an HSA, your money goes in tax-free, grows tax-free, and can be used now or later to pay for eligible medical expenses – again completely tax-free. It’s a unique benefit that’s only available with an HSA-qualified health plan.
Now that you know what an HSA is, here’s how it works:
Simply sign up with your employer to contribute money pre-tax from your paycheck. Then watch your money grow. Your HSA funds can earn interest that is never taxed.
Have a doctor’s appointment or need to fill a prescription? Tap into your HSA to withdraw funds tax-free to cover thousands of eligible medical expenses any time. Plus, if your account includes an HSA debit card, you have a convenient way to pay right at the point of sale.
Have money left in your HSA at the end of the year? No problem. It rolls over automatically so you can continue to grow your savings. And if you change jobs, health plans, or even retire, your HSA goes with you.
That’s right – you can continue to rely on your health care savings even into retirement. That’s especially reassuring because Medicare may only pay for less than 60 percent of your medical expenses, so an HSA is a smart way to make sure you have money set aside.
It’s easy to start building your healthcare savings for today and tomorrow. Simply sign up for an HSA during your open enrollment period.
Check out the Health Savings Account FAQ page to learn more about these tax-advantaged accounts.