Maximize your finances and health with Health Savings Accounts (HSAs)

Imagine a financial tool that not only helps you save on taxes but also grows your money while providing a safety net for your healthcare needs—welcome to the world of Health Savings Accounts (HSAs). HSAs can be a game-changer in your financial strategy, whether you’re planning for future health emergencies or looking for a savvy way to build wealth. As a reminder, HSA accounts are unique: they are the only type of account that has the potential to, receive a tax deduction when you contribute to it, have the account grow tax-free, and have distributions come out tax-free.

Everyone should be taking advantage of this triple tax benefit. If you are eligible to participate in an HSA, consider how you can get the most value out of this great benefit! Leave it in and let it grow!

Here are some ways to maximize the value of your HSA:

• Take advantage of any employer match: If your employer offers a matching contribution, be sure to contribute enough to receive the full match. This is essentially free money!
• Invest your HSA funds: Many HSAs offer investment options. Investing allows your HSA funds to potentially grow faster than they would with a standard interest rate, and the best part: earnings are tax-free too!
• Turn your HSA into an emergency fund: You can hold off on reimbursing yourself for medical expenses and save your receipts. There’s no deadline for reimbursements, so you can “cash in” those receipts when you need the money, even years later.
• Use funds for the whole family: Even if your family members aren’t on your health insurance plan, you can still use your HSA funds to pay for their eligible medical expenses.
• Adjust contributions as needed: Your medical needs can change. You can typically adjust your HSA contributions throughout the year to ensure you have enough tax-free money to cover expenses.
• Build a retirement nest egg: After age 65, HSA funds can still be used tax-free for eligible medical expenses. HSAs also offer additional distribution opportunities at age 65.
• Make catch-up contributions: Starting in the year you turn 55, you can contribute an extra $1,000 to your HSA, above the standard contribution limit. If you and your spouse both have HSAs, you can each make catch-up contributions.