Health Savings Accounts = Smart Financial Decision

• HSA is great because it can be invested like a standard retirement account, to grow your savings over time as it has a killer tax advantage. 

Contributions are made tax-free, up to the annual limit and funds can be used tax-free for qualified medical expenses. 

For 2023, limits are: 

• $3,850 for individual participation
• $7,750 for parent with dependent(s)
• $7,750 family
• Catch up - $1,000 for each eligible over age 55

If you have an HSA, you get a triple tax benefit:

• You never pay taxes on the contribution into your HSA. It is pre-tax
• You get interest earned on the money you contribute tax free
• You can pay for qualifying health expenses, tax-free at anytime
• You can let your HSA grow while maintaining a collection of HSA eligible receipts to reimburse your self with at any time, tax free.
• Examples of HSA eligible items are extremely inclusive. The list of what qualifies for a Health Savings Account Eligible expense is found on this IRS document
• It is not just Dr, chiropractic, or other provider visits. It includes Motrin, saline solution, durable medical equipment, even vitamins! 
• Save your qualified receipts as these are eligible for tax free reimbursement at any time

After age 65

• You can transfer your HSA into an IRA
• You can use the HSA funds to pay for your Medicare premiums 
• At age 65, you can spend your HSA dollars on anything, not just medical expenses, and you won't incur the 20% penalty. The withdrawal will just count toward your gross annual income.
• You can take out funds tax free if it is reimbursement for an earlier expense

• I have no affiliation with Fidelity. I am showing you their tools and resources below for educational purposes and convenience, There are many banks which have an HSA.
• Fidelity is a full brokerage account. You can invest in stocks, bonds, mutual funds etc. They may even allow you to use the funds to invest in real estate.

• HSA & 401(k) Maximizer: How does your 401(k) stack up against an HSA? Calculate how much you may want to consider contributing to both and make the most of an HSA on your journey to retirement.

• HSA Tax Savings Calculator: Estimate how much you can save with an HSA's triple tax benefits.

Almost all medical expenses that is not covered by an insurance or healthshare, are eligible expenses under your HSA to be paid tax free. Examples below are with Fidelity.

Fidelity Resources

• Resource Fidelity Bank
• Fidelity has No minimums Simple Set up - Done within Minutes 
• FAQ's