| Here's why it pays to shop for this tax-advantaged savings account | | | | WED, OCT 09, 2019 | | | | If you don't know much about an HSA, you should do some homework and find out the many benefits.
A health savings account is basically a type of account that allows you to set aside money on a pre-tax basis to pay for qualified medical expenses. By using untaxed dollars in an HSA account to pay for deductibles, co-payments, co-insurance and some other expenses, you may be able to lower your overall health-care costs. That includes qualified medical expenses, including dental and vision. And the cool thing is withdrawals to pay these expenses are never taxed.
An HSA offers triple tax savings that can be extremely beneficial to anyone who may need to pay off a big bill for a medical emergency. An HSA will also cover a variety of health expenses that aren't covered by traditional employee health insurance plans. If you're generally healthy and want to save for future health-care expenses, an HSA may be an attractive choice. Or if you're near retirement, an HSA may make sense because the money can be used to offset the costs of medical care after retirement.
While it sounds great to have a plan that offers such valuable tax savings and a wide array of services, it's important to understand all of the details of an HSA before determining if it's right for you.
For more cool stuff like this, please follow me on Twitter @jimpavia and check out CNBC's Financial Advisor Hub and CNBC + Acorns Invest in You: Ready. Set. Grow. | | The top 10 best places to retire | | U.S. News & World Report determined the best places to retire based on criteria such as housing affordability, taxes, health care and overall happiness. | | | | | | Here's what Congress may do to fix Social Security this fall | | The House of Representatives may vote on a measure to extend Social Security's solvency in the next few months. That, coupled with new proposals to change a rule that affects public workers' benefits, could amount to the most substantial reforms to the insurance program since 1983. | | | | | |
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