- Helps you cover for qualified out of pocket medical costs IF you have high deductible health insurance policy (min deductible of 1500 and max out of pocket 7,500). You need to qualify for an HSA depending on the type of health insurance you have.
- It’s like a traditional IRA, you put in PREtax dollars and can write this off on your gross income for taxes. You can use this money to pay for qualified medical expenses, otherwise, you need to keep the money in the HSA account until you reach 65 years old then you can withdraw the money for any reason. At that point, you pay income tax on the money you use for something other than qualified medical expenses, but there is no penalty. If you take the money out before 65, and use it for non medical expenses, there is a 20% penalty.
- Secret: You can invest through your HSA account, and this money grows tax free. People use this account for two reasons: to help cover out of pocket medical costs throughout life, and as another way to financially protect themselves in retirement.
- Can put 4k per year into this account, vanguard doesn’t have HSA option but fidelity is a good choice.
I need to get me one of these
Joe DiAndrea 