HSAs are one of the best financial accounts which help the owner to pay their medical expenses. These accounts are one of a kind as they help individuals as well as families to save funds for rapidly increasing medical expenses.
HSA offers enormous benefits which are still not known to many people. Some of the astonishing facts of Health Saving Accounts are mentioned below.
- Triple Tax Benefits: Individual having HSA enjoys the benefits of both Roth retirement as well as Traditional accounts. Funds deposited in HSA are free from tax. Even the growth of the contribution is tax-free. Another important benefit is that the contributions done for qualified medical expenditures are also not subjected to tax.
- Continuous growth of HSA contributions: the balance of HSA keeps on growing year after year. This means if the funds of HSA remain unused then the same can continue in the account. It’s not like other flexible accounts where the individual loses all the unused funds at the year-end.
- Investment options: HSA also gives an opportunity of earning profits on the HSA balance. Individuals can invest their HSA money in low-cost index funds.
- With HSA an individual can also pay prior year medical expenditures: just by maintaining a good expense record an individual can use HSA for reimbursing medical expenses years later after the actual year when the expenses were made.
- HSA contributions function as an emergency fund: it’s a strategy used by many health Saving Account holder. At the time of payment of medical expenses individual uses funds from their taxable income and saves the bills. On the other side, HSA funds continue to grow. Whenever there is an emergency situation, they can apply for medical reimbursement from HSA.
By availing HSA, an individual can prepare himself as well as family to face every kind of medical emergencies. Lively me is a financial institution which provides one of the best HSAs. The accounts can easily be operated online. Employee and employers just have to register at lively me and the account gets opened within 5 minutes.