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Why Choose a Health Savings Account?
- You can save as much as 50% on your insurance
premiums.
- 100% of your HSA contributions are deducted
from your pre-tax income.
- The interest earned by the money in your HSA
is also tax-free.
- You pay no taxes or penalties when you use your HSA for qualified medical expenses.
An HSA allows you to purchase a high deductible insurance plan with lower premiums, making it an excellent way to save money on healthcare. And because your contributions to the fund are tax-free, you can enjoy considerable tax savings. Plus, the interest is tax-free and tax-deferred, so you can use Health Savings Accounts to supplement your retirement income as well.
Top 10 Reasons to Have a Health Savings Account
- Tax Savings
- You can deduct your HSA deductions from your gross income
on your federal tax return, even if you do not itemize deductions.
Many states also allow the deduction from state income taxes.
- You can deduct your HSA deductions from your gross income
on your federal tax return, even if you do not itemize deductions.
Many states also allow the deduction from state income taxes.
- Earned Interest
- Funds in your HSA grow with tax-deferred interest.
- Funds in your HSA grow with tax-deferred interest.
- Portability
- You own your account, so even if you change
jobs, your HSA funds go with you.
- You own your account, so even if you change
jobs, your HSA funds go with you.
- Affordable Health Coverage
- Use your Health Savings Account to cover
100% of the cost of routine medical expenses like office visits,
lab tests, and over-the-counter drugs.
- Use your Health Savings Account to cover
100% of the cost of routine medical expenses like office visits,
lab tests, and over-the-counter drugs.
- Reduced Insurance Premiums
- Your insurance premiums can be substantially
lower when you change from a low-deductible plan to a high-deductible
plan.
- Your insurance premiums can be substantially
lower when you change from a low-deductible plan to a high-deductible
plan.
- Long-Term Savings
- Because your funds can roll over from year
to year, you can let the funds in your account grow tax-deferred.
That's why HSAs have been referred to as the "Medical IRA."
- Because your funds can roll over from year
to year, you can let the funds in your account grow tax-deferred.
That's why HSAs have been referred to as the "Medical IRA."
- Invest for Retirement
- You can invest your Health Savings Accounts funds, pre-tax, into a variety of mutual funds, much like a 401(k). After age 65, you may make taxable withdrawals from
your HSA for any reason without the 10% penalty for non-medical withdrawals.
- You can invest your Health Savings Accounts funds, pre-tax, into a variety of mutual funds, much like a 401(k). After age 65, you may make taxable withdrawals from
your HSA for any reason without the 10% penalty for non-medical withdrawals.
- Safety Net
- There is no "use it or lose it"
provision, so you can build up the savings in your HSA to use
for major health events.
- There is no "use it or lose it"
provision, so you can build up the savings in your HSA to use
for major health events.
- Coverage for the "Extras"
- You can also use your HSA funds for programs
not usually covered by other health plans, including dental,
optical, and much more.
- You can also use your HSA funds for programs
not usually covered by other health plans, including dental,
optical, and much more.
- Empowerment
- Take control of your routine healthcare decisions - you get to choose the healthcare and providers that you want.
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