Health Savings Account (HSA) Features and Benefits

Money in a Health Savings Accounts (HSA’s) can be invested in similar ways to money in an IRA account. The same type of rules and restrictions apply to HSAs in regards to investing money as well as deferring taxes on earnings.

  • Since contributions to an HSA are made with pre-tax dollars, you have the ability to reduce your income taxes.
  • All earnings on investments in an HSA are non-taxable for as long as the money stays in the account, or if the money is withdrawn to pay medical expenses.
  • If earnings are withdrawn for non-medical purposes, and the owner is under the age of 65, then taxes have to be paid on the amount withdrawn.

There are limits to the amounts you can contribute to HSAs in one year. As of 2009, the limit for individuals is $2,850 and for a family it is $5,650.

An HSA has more extensive coverage for medical expenses than most conventional health care plans. The coverage may allow you to pay for the following medical expenses:

  • Alternative health care procedures such as acupuncture and homeopathy
  • Physical therapy and chiropractor visits
  • Psychiatry and psychotherapy
  • Dental exams, teeth cleaning, and treatment
  • Travel expenses related to health care
  • Maternity expenses
  • Preventative health care
  • Prescription and nonprescription drugs

Call Jeff Pennington today at 1-877-221-6198 to discuss your needs and get a selection of life insurance quotes for your situation. Jeff can answer all of your insurance questions and will provide friendly personal advice.

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