A Health Savings Account (HSA) is a savings account for your medical expenses, available with High Deductible Health Plans (HDHP). Health insurance providers and many banks allow you to open a HSA. HSAs are a tax-free way to protect yourself from the rising cost of healthcare. This is especially important right now as medical insurance regulations are up for debate in Washington and many Americans are losing coverage. Medical expenses show no sign of declining in the near future.
Misconceptions of an HSA
Common misconceptions about HSAs are the need to spend all the money in one year and the money has to stay in the bank. In the past, a “use it or lose it” aspect of HSAs kept many people from taking advantage of this employee benefit, but that rule has changed in recent years to allow money in the account to roll over year to year.
Tax Benefits and Investment Options for HSAs
HSAs have been around for ten years, but the majority people who have them don’t understand all the benefits. The major benefits include three tax advantages: a tax deduction when you put money in it, tax free growth on your investment and tax-free distribution from your account. In addition, your income taxes may decrease because this investment lowers your income. For example, if you make $50,000 a year and put $3000 into an HSA, your income tax will be on $47,000.
HSAs are similar to IRAs in that some plans are self-directed and allow you to use alternative investments in your account, such as precious metals, real estate and other investments not easily accessed via the stock market.
Video: HSA Plans Filled with Gold and Silver
In this video, Charles Thorngren, CEO of Noble Gold and Bill Humphrey, CEO of New Direction IRA discuss HSA plans.
Unsure if investing in a gold IRA is right for you? Download our FREE Gold & SIlver Investment Guide to get a better understanding of the benefits precious metals can add to your portfolio. Or give our team a call at 877-646-5347 and we’ll happily answer any of your questions with no expectations.