HSA: Health account with a powerful wealth-building benefit
What is an HSA?
A health savings account (HSA) is a tax-advantaged account that can be paired with a high-deductible health plan.
Why use an HSA?
An HSA has greater tax advantages, and therefore greater savings potential, than other types of savings accounts.
How do I use an HSA?
You can treat an HSA as a long-term investment account, an account for paying medical expenses, or both.
If you have access to an HSA, you can invest in it to potentially increase your wealth. That’s because contributions, earnings, and even withdrawals can be tax-exempt if certain requirements are met. For 2024, you can contribute up to $4,150 as an individual, or $8,300 per family; if you’re 55 or older, you can contribute an additional $1,000 per eligible participant. To access HSA funds without tax or IRS penalty, it’s essential that you keep your receipts for qualified medical expenses (perhaps for years or decades). I can help with some ideas for secure, virtual, long-term document storage if you need assistance.