health savings accounts
An Health savings accounts (HSAs) is a tax-advantage personal savings account that can be used to pay for medical, dental, vision and other qualified expenses now or later in life. To contribute to an HSA you must be enrolled in a qualified high-deductible health plan and your contributions are limited annually. The funds can be invested, making it a great addition to your retirement portfolio. If your employer offers payroll deduction, you’ll see immediate tax savings on your contributions.
You can use the money tax-free to pay for eligible expenses such as:
- Copays & Deductibles
- Prescriptions
- Dental Care
- Contacts & Eyeglasses
- Hearing aids
- Laser Eye Surgery
- Orthodontia
- Chiropractic Care
Since it is a savings account, you are encouraged to save more than you spend. Unlike FSA funds which are “use-it-or-lose-it,” your HSA balance rolls over from year-to-year earning interest along the way. The account is portable, meaning if you ever leave your employer, you can take the HSA with you because it’s your money and your account.