What exactly is an HSA and what are the rules for qualifying?
A Health Savings Account, or HSA, is a very efficient way to save money for medical expenses, and/or accumulate money for retirement.
In order to be eligible for an HSA you must be enrolled in a high-deductible health insurance plan (HDHP). This is a health insurance plan with a high enough deductible, and tagged “HSA-eligible”. There are no other requirements for eligibility and no income limitations.
These plans can be invested in many different ways, including stocks, bonds and mutual funds.You may be able to enroll through a work based plan, however they are also offered at many different HSA custodians that are not through employers.
The tax benefits of an HSA make them very attractive for paying healthcare expenses. As a matter of fact you can pay for a lot of healthcare related expenses with money that will never, ever be taxed.
Another great feature of an HSA is that they are not “use it or lose it”. Should you use money for things other than medical expenses you will only pay taxes (so long as you withdraw the money after age 65) on the distribution. In essence it will behave a lot like a 401(k) if you use the money for non medical expenses. You won’t pay penalties, only taxes.
The HSA could be another great tool to use for improving your financial situation. There are many benefits, however when it comes to financial decisions never say “never”, never say “always”, it depends!
Rees Bridges brings a unique value to the IFW as both a highly accomplished creative professional and a successful financial services executive to serve in his role as Senior VP, Marketing & Communications.
Over the last decade Rees has served as the lead marketing & communications professional for a Fortune 500 Financial Services firm. He oversaw all advisor marketing strategies, client communications, and the entire firms branding and marketing initiatives.
Rees continues to pursue his passions as a creative professional & musician for over 30 years, with an impressive profile and reputation as a designer, performer, teacher, and studio musician. Here is a little secret: He serves in the role as an international clinician for Mapex drums, Paiste Cymbals and held the record for world’s fastest drummer between 2006 and 2007.
Rees grew up in London, England and currently resides in Miami, Florida. When not at work, he enjoys spending time with family and friends, traveling, and indulging in his passions for music and creative pursuits.