9 Reasons to Consider an HSA

HSA premiums are vastly cheaper than other healthcare plans

In order to use a health savings account (HSA), you must be part of a High Deductible Health Plan (HDHP). Though the deductible is high, your premiums are low and you are still covered for catastrophic medical events. The renewal costs are also much cheaper than an HMO, PPO, or other types of health plans.

HSA will cover peripheral medical costs

Dental care, eye glasses, and eye surgery are typically not covered with many HMOs or PPOs. HSAs can be used for these types of expenses, in addition to acupuncture, psychiatric treatment, fertility treatment, and other alternative medicines.

You control your medical care with an HSA

With an HSA, there is no network. Account holders are not forced to choose from a list of doctors or hospitals. HSA account holders play an active role in every healthcare decision.

HSAs are tax-deductible

The money that you deposit into your HSA is tax-deferred. Even if you spend the entire account savings on approved medical expenses, the money is still deductible.

Money saved in an HSA never expires

As mentioned above, unlike a Flex Spending Account, the money in your HSA can grow for years until you need it; regardless of employer. You can pay for medical expenses out of pocket, save the receipts, and then reimburse yourself for those qualified medical expenses any time in the future with HSA funds.

HSAs can be filled from an IRA

You can pay for your health care from your retirement account once in your lifetime. If you’re short on cash, you can take a bit from your retirement and transfer to your HSA without a penalty.

With a self-directed HSA, your health care dollars can be an investment

Your HSA money can join with your self-directed retirement funds and invest in alternative investment options like real estate, gold, private stock, or a loan.

HSA investment earnings are tax-deferred

If you happen to make a lucrative investment and earn thousands, the money will stay in your HSA until you need it, tax-deferred.

HSA money earns interest when you’re not using it

If you have trouble securing a profitable investment, or if you are between investments, the money in your HSA still earns tax-deferred interest.

Contrary to popular belief, health care costs are not tax deductible for most Americans

Healthcare costs must be 7.5% of your income to be tax-deductible. Most Americans do not qualify for this, even during a year when they spend a lot of money on health care costs.

Whether you're an employee, an employer, or you're self-employed, education about Health Savings Account is an important step in discovering the best health care option for you or your employees. Call New Direction Trust Company at 877-742-1270 or send us an e-mail at info@ndtco.com to learn more.