Wednesday March 21st, 2018
Jody Oliver, President and CEO of Infinisource Benefit Services, was a recent guest on Linda Bell’s popular segment on saving money, hosted on the Fox News Network. Oliver is an expert on health savings accounts (HSAs) and overviewed the benefits of using an HSA to prepare for the future.
In order to qualify for an HSA, you must be on a high-deductible health plan (HDHP). According to the IRS, an HDHP is any plan that has an individual deductible of at least $1,350 or a family deductible of at least $2,700. The HSA can only be used for qualified medical expenses.
Using an HSA gives you a triple tax benefit. “All contributions go in pre-tax, so you can invest in the different mutual funds, or take advantage of the cash investment benefits,” said Oliver. Over time, the funds in the account will grow and earn interest, which is also tax-free. The third aspect of the triple tax benefit is when money is pulled out for qualified medical expenses. As long as you spend the funds on qualified expenses, this will be tax-free as well.
It’s important to note that some companies offer an investing option for HSAs, but not all. If you’re considering an HSA only for the investment strategy, make sure to check with your employer to find out whether this is an option.
In addition to helping you plan for the short-term, including upcoming medical expenses, an HSA can help those reaching the age for retirement. Many retirees are surprised by the unexpected health care costs, which continue to rise. Having money put away in an HSA can boost your retirement strategy and ensure that you have funds available to pay for those health care costs when you’re no longer working.
Infinisource Benefit Services offers HSA administration for employers, making it easier to offer this valuable option as part of an attractive benefits package. Visit www.infinisource.com/benefits/HSA to learn more!