Top 5 reasons to open an HSA

When you use your HSA, it's like using a 25–35% coupon for your health care expenses.* That’s because HSA contributions are tax deductible. For example, let’s say you recently visited your dentist and received a bill for $400. When you pay with your HSA, you are saving between $100 and $140 dollars based on your tax rate.

Please note that each state can decide to follow the federal tax guidelines for HSAs or establish its own. Please consult a tax advisor regarding your state’s rules or visit our HSA Tax Center and/or your state’s Department of Revenue office for more information.
 

When you, your employer or anyone else makes a deposit into your HSA, it stays there forever. There is no "use it or lose it" rule, even if you move off the high-deductible health plan. It's a great way to save a pocket of money for retirement. Plus, any money you keep in your account will earn interest.

You can put money into your HSA and use it for unexpected medical expenses that happen without warning. You can also pay for qualified medical expenses as they come up and use your HSA to reimburse yourself.  You can use your HSA to pay for the qualified medical expenses of anyone you claim on your taxes, even if you're only enrolled with single coverage. This is a great way to plan for unexpected medical expenses for the whole family. 

With an HSA, you have the ability to invest your savings in a variety of mutual fund offerings. The best part is the money that you earn through investing is generally income tax-free. You can use that money for future medical expenses, or even for retirement.

Did you know that after turning 65 you can use your HSA funds for non-qualified expenses, like a boat or an exotic vacation? You’ll pay ordinary income tax on those funds, but the 20% tax penalty no longer applies. As you're planning for the future, your HSA can ease your mind and prepare you for retirement by saving money income tax-free.
 

* Results and amounts will vary depending on your particular circumstances. This example assumes individual is in 25% federal tax bracket and 5% state tax bracket.