Education Center
Health Savings Accounts (HSAs)
Sep 06

Why should I contribute to an HSA?

If you have what’s considered a high deductible health plan, you are allowed to contribute to a Health Savings Account. Any contributions you make will count as an above the line deduction (the best type of deduction), and effectively reduce your taxable income. Those contributions can accumulate interest on a tax-deferred basis, and can be withdrawn tax free as long as they are for qualified healthcare expenses. The monies in your account are portable and will carry over year to year, unlike the commonly confused FSA, or Flexible Spending Account.

Although an HSA will not directly reduce your premiums, if you look at the big picture and consider the tax benefits and lower monthly premiums from a high deductible plan, they could make a lot of sense for the right individual or family. Please contact us if you want help determining if an HSA makes sense for you.