HSAs – Your Secret 401(k) Power Booster
Health Savings Accounts (HSAs) are a way to allow you to save extra retirement money. The way HSAs function, they allow a person to save tax-free money in a separate account for medical-related expenses that are not covered by a health plan. HSA contributions are deductible like a 401(k) contribution, and the reason HSAs are supplemental is because a person can hold onto the money within the account for as long as they like.
Here are some more listed reasons as to why HSAs are beneficial to have:
- The use of HSAs savings to meet deductibles
- Growing money tax-deferred
- The ability to take the money when leaving an employer
- The flexibility of HSAs