I have been following Jordan’s Seven Accounts Every Family Should Have for the past few months and now I have come upon having an HSA account.
What is that?
Well, according the US Treasury website, Health Savings Accounts (HSAs) were created in 2003 so that individuals covered by high-deductible health plans could receive tax-preferred treatment of money saved for medical expenses. Generally, an adult who is covered by a high-deductible health plan (and has no other first-dollar coverage) may establish an HSA.
Basically, it’s all mine! Any money I deposit is tax-free (which for a single Chickie with no kid-lings, BONUS!),if I am laid-off or change jobs, it goes with me and at 65 it turns into a retirement account. I like that it keeps on building year to year…no lose it here!
I generally used a FSA (Flexible Spending Plan) which is a use it or lose it medical plan. I never really had an issue of having money left over at the end of the year. This time around, it is taking a bit more maintenance on my part. (Think, checking account with all it’s deposits and withdrawals) My employer does contribute a bit towards my account by my participation in health fares and such.
Thus far, matched with my insurance, it’s been a good choice.