A health savings account (HSA) not only helps pay for qualified medical expenses, but it can also help you save your own money!
Suppose your colleague does NOT have an HSA, meaning he doesn’t get to save money tax-free. Unsurprisingly, your colleague will have to pay more at the end of the year in terms of taxes and medical expenses that aren’t covered by his insurance.
You decide to go another route and get an HSA, meaning:
You get to put your pre-tax money into the account.
you can gain interest tax-free using this account.
You can take money from the account without paying taxes on it, as long as it’s used for a qualifying expense.
You can budget how much to contribute.
Your unspent dollars are also rolled over each year!
Who would’ve thunk, right? Benefits like HSAs can really, really save a whole bunch of money for you and let you pay Caesar ONLY what is Caesar’s (and not a penny more).
But taxes and savings aren’t always as easy as 1, 2, and 3. If you need help saving money for big expenses or more advice on staying within the budget, contact Landmark Tax Service. They can help you find a number of ways to get the most value out of every dollar you spend.