Why Do I Want An HSA?
- A health savings account allows you to set aside money before you’ve paid income taxes on it – so the value of your health savings is greater than money you would spend from any other regular account you owned. Interest earned is tax-free. When you use the account to pay for approved medical expenses, you don’t pay taxes on the money.
- Since you pay for eligible medical expenses with your HSA, you have flexibility to shop around for your healthcare. If you choose to see a provider outside your network, for instance, you can pay the higher copay with your HSA.
- There is no initial deposit required to open an HSA.
- HSA funds stay with you even if you leave your job or your health plan. Your HSA funds can be used to pay for medical expenses for you and your dependents.
- After you turn 65, your HSA funds can be used for any purpose without penalty (but you will pay taxes on what you use).