Ask people about their financial concerns these days, and you’ll notice that most have something in common: We all tend to worry about the same things! For many of us, the cost of healthcare (particularly rising health insurance premiums) will fall near the top of our priority list. At the same time, you might also hear that retirement is a common concern. The, of course, there are taxes.
What if we told you there might be one way to address all three of these concerns?
With regard to health insurance, many of you face a dilemma: Pay higher premiums for a low-deductible plan, or opt for the lower premiums on a high-deductible plan. The first choice can strain some budgets, while the other leaves you vulnerable to large medical bills before your insurance kicks in to cover the rest.
That’s why health savings accounts (HSAs) are becoming more popular. With this type of account, you can save money to be used toward qualified healthcare expenses. So, you don’t have to worry about meeting your deductible when you have money in the bank. Since the funds roll over from year to year, you can enjoy peace of mind knowing that you’re prepared for this occasion in the future.
What if you never use all of the funds in your account? Don’t worry; that money isn’t lost. You can keep rolling it over all the way into retirement. At that point you can use the funds for certain expenses like Medicare premiums, dental care, vision check-ups and supplies, medications, and more. Essentially, an HSA could actually help you save a bit more for retirement!
At the same time, the money you’re stashing in your HSA can be deducted from your paycheck on a pre-tax basis. That means you lower your overall income tax liability just a bit, and you don’t have to pay taxes on the money you set aside for qualified medical expenses.
As you can see, a health savings account is a way to “kill two birds with one stone” – except, in this case, it’s three birds!
A health savings account is only eligible to certain people who are enrolled in lower-premium, high-deductible healthcare plans. Give us a call to learn more about this money-saving opportunity, and we can help you decide if an HSA is right for you.