Is An HSA Right For Me?

What is a health savings account (HSA)?

Health savings accounts (HSAs) help people save money on their medical expenses. Because of their powerful tax savings, they’re the best way to pay for healthcare costs.

“HSAs are the closest thing to a free lunch offered by the Federal Government”
– John Kador, WealthManagement Magazine

Are HSAs the same as flexible spending accounts (FSAs)?

No, HSAs are better! Here’s why:

HSA funds roll over with no use-it-or-lose-it limits, while you lose FSA funds if you don’t use them at the end of the year
HSA funds stay with you when you change jobs or retire, while FSA funds don’t come with you
HSA funds can be used as an investment vehicle to build wealth, while FSA funds cannot be invested

Learn more about why HSAs are so great with this 2-minute video.

HSA tax savings:

Contributions to your HSA are either pre-tax or tax-deductible
HSA interest and earnings grow tax-free
HSA funds can be used tax-free to pay for qualified medical expenses for you, your spouse, and your tax dependents, even if they’re on different health plans. See a list of qualified medical expenses here.

How can I get an HSA?

To open an HSA, you must meet a few eligibility requirements, including being covered by an HSA-qualified health plan. HSA-qualified plans often have lower monthly premiums than traditional health plans, and they also give you access to the powerful tax savings HSAs provide. HSA-qualified plans are especially valuable if you’re generally healthy and don’t go to the doctor much.

Our quick quiz can help you easily find out if you’re eligible to open an HSA. If you are HSA-eligible and would like to open an account, just reach out to your employer, and they can help you get started.

If you have any questions at all about HSAs, feel free to ask us. We’re glad to help.