Having a Health Savings Account, or HSA, comes with a wide array of financial benefits. In 2021, we could likely all use a few extra financial perks! From tax advantages to helping with out-of-pocket medical costs, HSAs are a worthwhile investment for many. The following outlines three unique advantages to opening a Health Savings Account at Lake Area Bank.
Contributions are Pre-Tax
When you sign up for an HSA, you will typically decide on an amount that will be deducted from each paycheck to automatically contribute to your HSA. This means those dollars can be deducted from your gross income on your yearly tax return! Additionally, contributions can come from anywhere – yourself, your employer, a relative, or anyone else who wants to contribute. HSA contributions and withdrawals are both tax-free, meaning 100% of the money you contribute stays with you!* However, the IRS does set limits to how much can be contributed.
Many Expenses Qualify
A Health Savings Account is like having a personal savings account specifically for medical expenses. However, there are a lot of expenses that could be eligible for HSA. Eligible expenses can include medical, dental, and even mental health expenses. For added convenience, most HSA funds are easily accessed by using a debit card issued to you by your HSA provider.
At times, people can become concerned if they have not used all the funding in their HSA as the end of the year approaches. Where does it go? It simply rolls over to the following year! Unlike a standard Flex Savings Account (FSA), which only allows a certain amount to roll over for a certain amount of time, HSA funds can carry over as long as they need to. HSA funds even remain untouched if you change employers or health insurance companies. This means your money STAYS yours- tax-free – until you decide you need to use it.
At Lake Area Bank, we can assist you with a Health Savings Account. Whether you are looking to begin a small fund, take advantage of tax incentives, or even save for retirement, HSA accounts can be the perfect way to help achieve your financial goals. Contact Lake Area Bank to see how we can help you begin your HSA journey!
While we hope you find this content useful, it is only intended to serve as a starting point. Your next step is to speak with a qualified banker who can provide advice tailored to your individual circumstances. Nothing in this article, nor in any associated resources, should be construed as financial, tax or legal advice. Furthermore, while we have made good faith efforts to ensure that the information presented was correct as of the date the content was prepared, we are unable to guarantee that it remains accurate today.