Why invest with an HSA

Tax advantages

First and foremost, there’s the triple tax advantages you’ll get when you save with an HSA.

• Contributions to an HSA are tax-deductible and reduce your annual taxable income.
• Any interest or investment earnings within the HSA grow tax-free.
• Withdrawals that you use for qualified medical expenses are tax-free.

Healthy, flexible savings for your future

However, it’s the potential for long-term savings that sets HSAs apart. Funds in an HSA roll over from year to year, so they accumulate and grow over time. When you put in the maximum allowable amount each year and take advantage of your available investment options, you’ll be able to build your own healthcare nest egg to help you afford treatments, equipment/aids and more later in life.

On top of that, HSA funds are flexible. You can use them to cover a wide range of healthcare needs, from routine check-ups to unexpected medical emergencies. While the primary purpose of an HSA is to cover “qualified medical expenses,” this definition is broad. Not only does this include services like doctors’ visits and treatments, but also prescription medications, dental and vision care, and even certain over-the-counter items.

Using your HSA after 65

Furthermore, once you reach age 65, you can withdraw funds from your HSA for non-medical expenses penalty-free; however, these withdrawals will be subject to income tax. This means that that your health savings account is essentially transformed into a supplemental retirement account—an additional source of income.

HSA certificates of deposit: a financial vitamin for your savings

Want to combine the tax advantages of a health savings account with the security and higher-earning potential of a certificate of deposit? Consider an HSA CD. You’ll get a strategic way to save for future medical expenses, maximize your tax benefits and earn competitive interest rates.

• HSA CDs can offer better interest rates than regular savings accounts or even traditional CDs, so your savings can grow more quickly over time.
• CDs are considered safe, low-risk investments because they are typically FDIC-insured up to a certain limit.
• An HSA CD lets you lock in a fixed interest rate from a few months to several years, ensuring predictable returns on your investment.

Conclusion

Of your many saving options, HSAs are unique in that they let you save for both short-term healthcare expenses and long-term financial goals. An HSA CD supplements these savings securely and dependably. By taking advantage of the triple tax benefits, maximizing your contributions, and investing wisely, you can combine the power of HSAs and HSA CDs to secure a healthy financial future while maintaining your own health and well-being.