Published by Audra Taylor, Office Oracle
Health can be a tricky thing. Maybe you are sick and need to see a doctor. Maybe you are so fat that you can no longer make it through the cat door. Or maybe, just maybe, your favorite random human thinks that you need an annual checkup from the vet, even though there is absolutely nothing wrong with you! Like, literally, nothing is wrong with you!
The vet even confirmed that you are in perfect health, and then gave you 3 shots anyway! Unbelievable. I may be the Office Oracle for Taylor Financial Group, but even I didn’t see that one coming.
But don’t go firing me as Office Oracle just yet, because one of my ultra-specific predictions just came true. The prediction? That humans may not understand the amazing benefits of a Health Savings Accounts. With health care expenses looming so large in retirement, potentially costing up to $500,000 per couple (according to Fidelity), every human should be looking for tax advantaged ways to pay for medical care. In fact, a family can contribute up to $6,900 per year to these amazing accounts (that’s lots of free cat food that you can buy with your savings!). However, I thought the misconceptions would come in the form of Rob Taylor once again telling Debbie Taylor that he got her sugar-free ice cream from Ben & Jerry’s (what a joke), but the point is that I was correct. Below are 3 common myths you might have heard regarding health savings accounts (HSAs).
(Not sponsored, but if anyone from Ben & Jerry’s sees this, we are totally willing to negotiate a free ice-cream per mention deal.)
- You must use HSA money by years end
This is a total misconception regarding HSAs, because you do not need to use HSA money by years end. In fact, you can use the HSA money tax-free to pay eligible medical expenses, like out-of-pocket costs for dental care, at any time. Additionally, after you turn 65, you can withdraw HSA money tax-free to pay for Medicare Part B, Part D, and Medicare Advantage premiums. It’s basically like a Roth IRA for health care. So, invest it like an IRA and watch it grow. Tax free growth and tax-free withdrawals — where do I sign up?
- Only employers can provide you with an HSA
The idea that you can only get an HSA through an employer is incorrect! In fact, anyone with an HSA-eligible health insurance policy can contribute to an HSA. Many financial institutions offer HSAs, and you can view different HSA administrators at www.hsasearch.com. However, if your employer offers an HSA, that might be a better and cheaper option for you, because many employers contribute to employees’ HSAs.
- HSAs are always hard to use
The statement that HSAs are always hard to use is a myth. In fact, many HSA vendors provide both a debit card and checkbook for HSA accounts, meaning that using HSA money can be as easy as swiping a debit card. Additionally, unlike FSAs (Health Care Flexible Spending Accounts), HSA users do not need to provide receipts for health care expenses to spend the money in their HSA.
In conclusion, do your research regarding HSAs before disregarding them completely to ensure that you do not miss out on tax free health savings! If you would like to know whether an HSA is right for you, contact the Taylor Financial Group team for assistance.
Till next time,
Audra Taylor, Office Oracle
This Blog is designed to provide accurate and authoritative information on the subjects covered. It is not, however, intended to provide legal, tax or other professional advice. For specific professional assistance, the services of an appropriate professional should be sought.