9 Reasons Why HSAs are Awesome

November 2, 2017

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Lauren
Lead Copywriter

Maybe you’ve heard of an HSA, but you’re not sure what it is. Or maybe you have an HSA, but you don’t use it. Either way, HSAs are awesome, and you’re really missing out. An HSA, or Health Savings Account, is a savings plan that allows individuals with high-deductible health plans ($1,350 deductible and up) to set aside tax-free money to help pay for medical costs. In other words, they can help you make money AND pay for things like contacts, birth control or monthly insurance payments.

Here are 10 reasons why you should take advantage of an HSA account RIGHT NOW.

1.)   Your contributions are tax free: You can contribute pre-taxed income straight into your HSA. In other words, your paycheck is subjected to taxes, but the amount you transfer over into your HSA is not.

2.)   Interest earned is tax free: Did you know that HSAs earn interest? Many banks offer HSA accounts with interest rates anywhere from .05-.35 %. You can put away as much as $3,450 if you’re an individual and $6,900 for your family. Talk about adulting!

3.)   Your purchases are also tax free: HSAs kick butt in the tax-saving department. When you purchase HSA-approved items, those items are not subjected to sales tax.

4.) You can deduct your approved purchases: You can also deduct your HSA-approved purchase at the end of the year. So that’s like, triple tax savings right there.

5.)   Anyone can contribute towards it: Did you know your parents, grandparents, friends, postal carrier, neighbor down the hall and pet chihuahua if said chihuahua has any money can contribute to your HSA?

6.)   You can roll over your savings: If you don’t use up all your HSA funds by the end of the year, don’t worry. You can roll it over and use it in the following year.

7.)   You can take your HSA with you: If you change your health insurance plan, you can take your HSA account with you.

8.)   You can buy simple items: It’s incredible how much HSAs cover! You can purchase small-time items such as birth control, prescription drugs or acupuncture.

9.) And you can buy big items: HSAs also allow to make big purchases such as guide dogs, wheelchairs, transplants or oxygen.

To learn more about how HSAs can help you and what items you can purchase, check out our handy flowchart. If you’re a member of KindHealth or not, we can get you started with your own OptumBank HSA account today! Give us a call at 1-888-871-3864.