HsA?

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.

2013 accts

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.

Uh? What?

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.

 

 

Receive Updates

No spam guarantee.

One comment

  1. Steph says:

    I took the high deductable/HSA plunge a couple of years ago and am SO glad I did!! I don’t go to the doctor much, and any meds/chiropractor appts are now paid out of my HSA. My employer gives an insentive amount each pay period so my deposit is essentially matched and I’ve been amazed at how fast it grows! And I like the fact that I know it’s money that can /only/ be used for medical expenses so I’m not tempted to use it for retail therapy instead. 🙂

Leave a Reply