If you are enrolled in a high deductible health care plan, an HSA is a tax-advantage medical savings tool that is designed to help you pay for current eligible health care costs and help you save for future medical expenses. There are unique benefits of an HSA, including the fact that your money stays with you even if you switch employers, change health plans or retire.
In addition, an HSA earns interest and you can invest your HSA funds, making it another savings mechanism for retirement. Once you reach a minimum balance of $1,000, you can open an investment account and invest your funds over $1,000. More good news – the contributions, earnings and qualified withdrawals to these investment accounts are tax-free. The PayFlex website has more information on these topics as well as a short video overview to help you get the most from your HSA.
