Every year, individuals and families spend billions of dollars on health-related expenses. With a Health Savings Account (HSA), you can allocate a designated amount of your income to be contributed (tax-free) to a health savings account for medical, dental or vision expenses. Your savings roll over year after year, so you keep your contributions even if you don’t incur any expenses at all. In fact, it might be helpful to think of an HSA as a “medical Individual Retirement Account (IRA).” You receive the same tax benefits as a traditional IRA, but you may withdraw the funds penalty-free at any time for medical, dental or vision expenses.
One way to utilize the HSA option is to create an account at your bank or credit union. Keep track of your medical, dental and vision expenses as you would for your taxes. Contribute your medical expenses amount to your HSA and then “pay your self back.” This way you use the account for tax advantages without investing in an account that usually earns very little interest.
Let Century Benefits show you how simple it is to save money on taxes, while making your medical, dental and vision expenses more convenient–and easier to pay.