Health Savings Accounts continue to gain popularity as a health coverage/savings option for employers and their employees. Yet, there are still some common misconceptions and a lack of awareness surrounding some HSA features and benefits.1. After age 65, you can withdraw money from your HSA for any type of purchase (not just medical expenses) without penalty – similar to a traditional IRA.
2. You can invest your HSA dollars.
3. You can use HSA dollars to pay for things that aren’t covered by your insurance plan, such as acupuncture, dental, vision, chiropractic fees, travel costs (for medical care) and certain operations such as Lasik eye surgery. And to pay long-term care insurance premiums.
4. You can make tax-deductible contributions to an HSA until April 15 (tax deadline) for the previous year.
5. You can pay now, cash in later. HSA members can hold onto their qualified healthcare expense receipts, and cash them in for a tax-free payout any time in the future.
6. If you don’t use it, you won’t lose it (as is the case with many FSAs).
7. You can take HSA dollars with you when you leave your job.
Genworth created a fantastic summary to keep advisors and brokers aware of the HSA opportunity, “Helping a Client Use an HSA to Pay Long Term Care Insurance Premiums.”
Source: EBA Benefit News, 7/2/2015
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