What is an HSA?

An HSA helps you save money and pay for your healthcare expenses and you don’t need to pay any tax for it. HSAs can also help you save for retirement when you can use the funds to pay for general living expenses without penalty. If you want to invest in an HSA, you can contact any bank in Stillwater.

How Does an HSA work?

An HSA is only available with high deductible health plans. These plans usually have lower monthly premiums. If you’re investing in a HAS, you don’t need to pay any tax for it. You can put the maximum amount of $3,400 for an individual or $6,750 for a family in your HSA each year. For instance, if you fall in the 28% tax bracket, investing in an HSA would help you save $952 in taxes or $1,890 for a family.

One more benefit of an HSA is that you don’t need to pay any tax if you withdraw money from your HSA account for health-related expenses. No matter your health insurance pays for that health expenditure or not, you can still save your tax. You can also use an HSA saving for the medical condition that your health insurance doesn’t cover. You can then use HSA funds to pay coinsurance or copays until you reach your out-of-pocket limit.

Benefits of HSA Saving

An HSA can help you save on health care and also offers some tax advantages.

• No need to pay taxes for the money you put into your HSA.
• No need to pay taxes for the money you take out of your HSA for health care expenses.
• You get tax-free interest on the money you save in your HSA account. HAS account offers various options to invest your HAS savings in mutual funds or stocks.
• You don’t lose the money in your account at the end of the year. Your HSA balance rolls over and is always yours to spend, save, and invest.
• You can use your HSA money for any purpose with no penalty after the age of 65 years.

Condition to invest in an HSA

You can invest in an HSA if you maintain a balance of $1,000 in your savings account. The money you invest continues to grow tax-free. Want to know more about an HSA investment, contact Stillwater bank and trust.