Is an HSA Right for You?

Healthcare expenses can add up quickly, and a Health Savings Account (HSA) can help you prepare for both expected and unexpected medical costs. An HSA is a personal savings account designed specifically for qualified healthcare expenses and is available to individuals enrolled in a High-Deductible Health Plan (HDHP).

An HSA allows you to set aside pre-tax money to pay for eligible medical, dental, vision, and mental health expenses. This can include things like deductibles, copays, prescriptions, and certain medical supplies.

One of the biggest benefits of an HSA is flexibility. The money in your account rolls over year after year, so you don’t lose unused funds at the end of the year. You can continue building savings over time and even use those funds for healthcare expenses later in life, including during retirement.

Benefits of an HSA

An HSA can help you:

• Save for future healthcare expenses 
• Lower your taxable income 1 
• Build long-term savings over time 
• Prepare for unexpected medical costs 
• Keep more control over your healthcare spending 

Contributions can come from you, your employer, or even family members, as long as annual contribution limits are not exceeded.

Is an HSA a Good Fit?

An HSA may be worth considering if you:

• Are enrolled in a qualifying HDHP 
• Want to save for healthcare expenses 
• Prefer a tax-advantaged savings option 
• Want funds that continue rolling over each year 
• Are looking for another way to prepare for retirement expenses 

Important Things to Know

HSA funds must be used for qualified medical expenses to receive tax advantages. Withdrawals used for non-qualified expenses may be subject to taxes and penalties.

If you’re considering opening an HSA, our team can help you understand how it works and whether it fits your financial goals.

1 Consult your tax advisor regarding eligibility and tax benefits.