Five Great Reasons to have a Health Savings Account

1. Tax Savings

Federally Qualified* HSA contributions can be deducted from your gross income on your federal tax return, even if you do not itemize deductions.

Many states also allow the deduction from state income taxes.

2.  Earned Interest

Funds left to accumulate in your HSA can grow with tax-deferred interest earning.

3. Reduced Insurance Premiums

Your insurance premiums are usually lowered by 20%-40% when you change from a low deductible to a high-deductible plan.

You can use these savings to fund your HSA.

4. Portability

Even if you change jobs, your HSA funds go with you.

You own your account.

5. Long-Term Savings

You can choose to let the funds in your account grow tax-deferred.

After age 65, you may make withdrawals from your HSA for any reason without a penalty. (You will pay income tax on non-medical withdrawals.)

Individual Savings HSA Growth
Over 30 Years

Family Savings HSA Growth
Over 30 Years

$56,141

$85,305

$138,530

$196,858

Medical Expenses $500/year

No Medical Expenses

Medical Expenses $1,000/year

No Medical Expenses

Based on a maximum yearly Contribution of $1,462.50 With a 4% interest rate.

Based on a maximum yearly Contribution of $3,375.00 With a 4% interest rate.

 
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Disclaimer: This information is for educational and informational purposes only. The content is not intended to be a substitute for professional medical advice, diagnosis or treatment. Always seek the advice of your physician or other qualified health provider with any question you may have regarding a medical condition. Never disregard professional medical advice or delay in seeking it because of something you have read.