Explain to me the benefits of an HSA.
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* reduces annual tax bill
* money can be used to invest if your company has that option
* there is no “use it or lose it” timeframe catch
Tax free savings account. I have virtually 0 health expenses right now as a young healthy person but that won’t always be true. I have well above 4x my out of pocket max saved and don’t have to worry about paying for it if I do need to go to the ER or something
It’s triple tax advantaged. Literally the single BEST account you can put your money into https://www.hsacentral.net/consumers/tax-benefits-health-savings-account/#:~:text=Health%20Savings%20Accounts%20offer%20a,lowers%20your%20overall%20taxable%20income
And if you are over 65 it can be used for non-medical expenses (but you will have to pay taxes on earnings similar to a traditional 401k)
Second this! Ask your parents/grandparents how much their medical expenses are in retirement. Save now for later.
I use it as an additional investment account since they are triple tax advantaged. It's a great way to invest some extra money if you have it
Imma need you to Google. 👀
Haven't done it because I almost never have medical issues so can't speak to it much, but I know it's pretty valuable for families.
That's a perfect reason to invest in a tax advantaged account that comes with a company match.
An HSA allows you to deposit into the account with pre-tax funds, which means that the amount deposited into the HSA is tax-deductible for you. At the same time, the growth of funds in the HSA account is tax-free, including interest, investment income, etc. If you use your HSA account to pay for qualified medical expenses, those expenses are also tax-free.
You can put money in, never worry about it, but you and your family can be covered. Mind you, it's only up to how much is in the account and then the rest of yours
If you live in CA theres complexities with it though because CA state tax applies to employer contributions and also any capital gains if invested