5 Features That Make Health Savings Accounts Attractive to Consumers
A health savings account or HSA has funds reserved for the owner to be used in payment of his medical bills.
An HSA is attached to a high deductible plan in which you pay for your medical expenses before it starts to pay anything as your medical benefit under the plan.
This is an attractive arrangement because you don't only avail of your medical benefits, but you have also something to serve as a financial investment.
First,the money that accumulates with health savings accounts is pre-tax and it is not subject to any tax levy if the fund is used for specific health care expenses.
Any amount that is not used within a year is carried forward to the subsequent year.
Your accumulated interest earnings on your contributions are tax-free provided that they are used to pay for certain health care expenses.
Second, as the account owner, you have full control over the disbursement of your health savings account money and you decide what items you want to pay from your savings account.
Since you own the money with the HSA and not your employer, the funds are easily made accessible to you without any questions asked.
Third, you have the privilege to arrange for an ATM card, checks or debit card with your financial custodian to make your withdrawal of money smoothly and quickly done.
Your minimum payment limit is set at $10 so there's no need for you to withdraw a large sum of money just to pay a small expenditure.
Fourth, since health savings account regulations are managed by the Internal Revenue Service, the custodian fees are reasonably made and can be taken from the HSA account directly.
Another thing is that it makes the fees and expenses low due to competition from financial institutions in handling your money.
Fifth, you can also use your HSA savings for other financial investment purposes when the money has grown tremendously.
The primary key in handling your health savings account is to look for a reliable custodian that can make your HSA account conveniently accessible, provide transparent pricing scheme, and good customer service, all these rolled into one.
This way, you can get the best benefits out of your HSA account while your money continuously grows.
An HSA is attached to a high deductible plan in which you pay for your medical expenses before it starts to pay anything as your medical benefit under the plan.
This is an attractive arrangement because you don't only avail of your medical benefits, but you have also something to serve as a financial investment.
First,the money that accumulates with health savings accounts is pre-tax and it is not subject to any tax levy if the fund is used for specific health care expenses.
Any amount that is not used within a year is carried forward to the subsequent year.
Your accumulated interest earnings on your contributions are tax-free provided that they are used to pay for certain health care expenses.
Second, as the account owner, you have full control over the disbursement of your health savings account money and you decide what items you want to pay from your savings account.
Since you own the money with the HSA and not your employer, the funds are easily made accessible to you without any questions asked.
Third, you have the privilege to arrange for an ATM card, checks or debit card with your financial custodian to make your withdrawal of money smoothly and quickly done.
Your minimum payment limit is set at $10 so there's no need for you to withdraw a large sum of money just to pay a small expenditure.
Fourth, since health savings account regulations are managed by the Internal Revenue Service, the custodian fees are reasonably made and can be taken from the HSA account directly.
Another thing is that it makes the fees and expenses low due to competition from financial institutions in handling your money.
Fifth, you can also use your HSA savings for other financial investment purposes when the money has grown tremendously.
The primary key in handling your health savings account is to look for a reliable custodian that can make your HSA account conveniently accessible, provide transparent pricing scheme, and good customer service, all these rolled into one.
This way, you can get the best benefits out of your HSA account while your money continuously grows.
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