Many expenses in life are unpredictable. But you know you’ll always have to pay for medical bills and retirement. And you can help meet these costs with a Health Savings Account, or HSA.
If you have a high-deductible health plan, you may be eligible to contribute to an HSA. You contribute pre-tax dollars, which can reduce your taxable income, and your money grows tax-free. Plus, withdrawals are tax-free if they’re used to pay for qualified medical expenses.
The money in your HSA can be carried over from year to year – you aren’t obligated to “use it or lose it.” So, the funds not spent on annual medical expenses can continue to grow tax-free. And your HSA is portable – you can take it with you when you leave a job.
If you don’t need all the money in your HSA to pay for medical costs once you reach age 65, you can use it to help pay for other expenses penalty-free. Keep in mind, though, that these non-medical withdrawals are taxable.
An HSA can help you in various ways. If you have access to one, consider taking advantage of it.
This content was provided by Edward Jones for use by Daniel Pellerin, your Edward Jones financial advisor at 189 East Main Street Suite G, in Newport, (802) 334-6261.