Save Money and Taxes with a Health Savings Account
A Health Savings Account (HSA) is a tax-advantaged account that lets you save and invest money for qualified medical expenses. You can open an HSA if you have a high-deductible health plan (HDHP), a type of health insurance with lower premiums but higher deductibles.
An HSA can benefit you in many ways:
You can contribute to your HSA with pre-tax dollars, lowering your taxable income and tax bill. You can also withdraw your HSA funds tax-free if you use them for qualified medical expenses.
You can invest your HSA funds in various securities, depending on the options offered by your HSA provider. This can help you grow your savings and reach your long-term financial goals.
You own your HSA, not your employer or health plan. You can keep your account even if you change jobs, switch health plans, retire, or become unemployed. You can also use your HSA funds for qualified medical expenses, regardless of whether your health plan covers them.
You decide how much to contribute to your HSA each year, up to the annual limit set by the IRS. You also decide how to use and invest your HSA funds.
An HSA can also benefit your business:
HDHPs typically have lower premiums than traditional health plans, which can reduce your healthcare costs and free up more money for other business expenses or investments.
If you contribute to your employees’ HSAs as part of their compensation package, you can deduct those contributions from your business income tax return.
By offering an HDHP with an HSA option, you can give your employees more choice and control over their healthcare spending and saving. This can increase their satisfaction and loyalty to your company.
If you want to open an HSA or offer one to your employees, you need to find a qualified HSA provider that meets your needs and preferences. One of the nation’s leading independent self-directed IRA and 401(k) companies is Mountain West IRA Inc., based in Idaho. They offer HSAs that allow you to invest in a wide range of alternative assets, such as real estate, precious metals, private equity, and more.
