Many Americans are aware of the tax benefits such as individual retirement accounts, or 401(k) savings plans; but the less-known HSA can provide some major tax relief. Here are three ways:
- Tax-free contributions. All money you set aside for your HSA from your paycheck each time goes into your HSA account without the financial burden of paying taxes.
- Tax-free growth. Unlike other savings vehicles, your HSA grows tax-free. You won’t need to worry about paying taxes on the interest you’ve earned in your HSA.
- Tax-free distributions. Funds spent from an HSA are not taxed as long as they’re spent on qualified medically-related expenses such as doctors’ visits, dental and vision, etc.
To learn more about HSA tax advantages and how they can benefit you and your situation, give us a call!
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The content within this document is for informational and educational purposes only and does not constitute legal or tax advice. Customers should consult a legal or tax professional regarding their own situation. This document is not an offer to purchase, sell, replace, or exchange any product. Insurance products and any related guarantees are backed by the claims paying ability of an insurance company. Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results.