What is an HSA and why you need one.
Health Savings Accounts (HSAs) are s avings accounts that help manage healthcare cost, they are similar to typical savings accounts, except they are used to pay for qualified health expenses such as copays and help meet insurance deductibles. If used correctly, HSAs can be a great way to invest money for long term goals. Here is why: 1. Contributions made into HSAs are pre-taxed 2. Expect growth in a HSA to be taxed free 3. Any withdrawals or distributions made from a HSA is also taxed free If you are a healthy young adult and are not planning on starting a family, it is more beneficial to enroll in a high deductible insurance plan as you are less likely to attend doctor's appointments and utilize your insurance policy. High deductible plans typically have less coverage however benefits the consumer due to lower premiums, meaning overall you save more money throughout the year! Contrary, health insurance policies that have additional benefits, typically have low ...
