Skip to main content
All CollectionsGetting Started
Bottomline benefits of a health savings account
Bottomline benefits of a health savings account

Break it down...why is an HSA so awesome?

Updated over a week ago

One of the greatest benefits of a Health Savings Account (HSA) is that they have three tax advantages. HSA contributions are tax-deductible, the growth on invested contributions are tax-free, and the money can be used on qualified medical expenses tax-free. This makes HSAs the most tax-advantaged investment option for health-related expenses and retirement. Lastly, the funds in your HSA are always yours. Unlike a flexible spending account (FSA), unused money in your HSA isn’t forfeited at the end of the year; it continues to grow tax-deferred forever.

When you’re spending hundreds or even thousands of dollars on out-of-pocket medical expenses, you may be eager for more ways to save money. HSA's can help you save on taxes in three different ways:

  • Lower your tax bill with a deduction for contributions

  • Invest your HSA balance for tax-free growth

  • Make tax-free withdrawals anytime for qualified medical expenses (including some over-the-counter medical products)

There’s no doubt about it—pairing an HDHP with an HSA is a savvy move. But it’s important to know the rules before you start making contributions.

We think that is pretty awesome. 

Did this answer your question?