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Health Savings Accounts (HSA) Tax Free Savings for Health Care Expenses

As health care costs continue to increase, many people are looking for ways to plan ahead for futeure health care costs. Recent Federal regulations have created a tax-free health savings account (HSA) to help you set aside money for your future health expenses. To take advantage of this tax savings offered by an HSA, youmust have a high deductible health plan that meets the Federal guidelins.

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Advantages of an HSA

  • Save Money and reduce Your Taxable Income. Save for your healthcare expenses. No penaties or taxes apply to withdrawls made to pay for eligible healthcare expenses.
  • Put your money to work. Just like an individual retirement account (IRA), the money you contribute earns interest.
  • Supplement Your Health Plan. Expenses not covered by your health plan can qualify as eligible expenses for your HSA.
  • HSA's are Transferable to a surviving Spouse. In the event of death,your spouse can begin using and contributing funds to your HSA.
  • Additional Retirement Income. When you turn 65 you are not allowed to make additional contributions, but your HSA funds can still be used for expenses not covered by Medicare. You can also withdraw fund for non-qualified expenses without penalty but will be subject to income tax.

 

 
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