Health Savings Accounts: Are They Worth It?

If you’re a working adult, then there is a good chance that you’ve heard of health savings accounts. You may have also wondered whether or not these accounts are worthwhile. The answer is yes, in most cases. Health savings accounts come with many excellent benefits as long as you set them up correctly.   

These accounts are basically tax-exempt trust accounts or custodial accounts. You should set them up through an experienced health savings account trustee to ensure that they are set up correctly and in such a way as to have maximum benefits for you.

As long as you do that, you can enjoy many advantages by having a health savings account. These include:

·         Tax-deductible contributions

·         Tax-free distributions

·         Allow you to save pre-tax dollars for healthcare expenses that may be incurred in the future

·         Can be paired with high-deductible health insurance plans

·         Earnings, including interest and dividends, are tax-exempt at the federal level.

·         Funds are withdrawn tax-free as long as they are used to pay for eligible medical expenses

As you can see, there can be a great many benefits to having a health savings account. If you think that these benefits could work in your favor, then talk with a financial professional about getting one set up for yourself!