Investing in a health savings account (HSA) is a rapidly growing trend. An HSA is a tax-exempt savings account used to pay for qualified medical expenses of an individual, their spouse and dependents. If the funds are not used, the money will continue to grow over time. One of the most attractive features of the HSA is that these funds grow through the accrual of tax-free interest. Additionally, consider the following HSA basics:
- HSAs have federally mandated annual limits that apply to HSA contributions.
- HSAs are portable if you change jobs or medical coverage.
- People ages 55 to 64 can make additional contributions to accelerate their savings rate.
And since an HSA can be invested in the market just like a 401(k), with tax-free interest, the opportunity for long-term growth is exponential. Talk with a Consociate Health representative to learn more.