HSA account have been around for a bit, but they are definitely gaining in popularity. I have had one now for two years since my company started offering it as an option.
The current HSA yearly contribution limit is 3500. But I have a feeling this will go up over time as more people open these accounts.
Why are these accounts amazing? Because of taxes taxes taxes. You get to take a tax deduction and then you don’t pay any tax when you spend on health related expenses. And you are not taxes on any invest portfolio gains. There is no other type of account that has as many tax benefits.
Did I mention you can invest your funds? You can invest the money you contribute to your HSA. Just like a 401k. The money can grow tax-free until you need it for health related expenses in old age. One day you will need money for healthcare, it’s not an if but when.
What if you didn’t have to worry about healthcare costs? How much stress could you alleviate? What if you could go to the best doctors and get prescriptions at no cost? I think that sounds pretty awesome.
What if you could purchase health items at the drug store for a love one? Would it be worth a portion of your income today?
If you have read my blog you know that money is a machine. Every dollar you have should be your employee. It should work for you. And that’s what an HSA account is. A machine that can work for. Imagine your money growing by 10% every year tax free. That can easily be your reality.
But I have to be real. Just like stock investing isn’t for everyone, neither is an HSA. So companies may pay for your entire health care. It might be worth paying down your debt rather than investing in healthcare.
The number one rule: know thy self.
Only you know what is best for you to do.
But know that an HSA is an investment in your future.