{"id":42413,"date":"2022-07-05T21:53:38","date_gmt":"2022-07-06T01:53:38","guid":{"rendered":"https:\/\/ilgfinancial.com\/staging\/2370\/?p=42413"},"modified":"2022-07-05T21:53:38","modified_gmt":"2022-07-06T01:53:38","slug":"making-the-most-of-your-hsa","status":"publish","type":"post","link":"https:\/\/ilgfinancial.com\/staging\/2370\/making-the-most-of-your-hsa\/","title":{"rendered":"Making the Most of Your HSA"},"content":{"rendered":"<p class=\"CCParagraph\"><span style=\"font-size: 11.5pt;\"><img decoding=\"async\" class=\"wp-image-42414 alignright\" src=\"https:\/\/ilgfinancial.com\/staging\/2370\/wp-content\/uploads\/2022\/07\/copy-space-health-account-finance-investment-business-fund-money-concept-medical-save-financial-hsa_t20_NWn3Wn.jpg\" alt=\"\" width=\"501\" height=\"335\" srcset=\"https:\/\/ilgfinancial.com\/staging\/2370\/wp-content\/uploads\/2022\/07\/copy-space-health-account-finance-investment-business-fund-money-concept-medical-save-financial-hsa_t20_NWn3Wn-200x134.jpg 200w, https:\/\/ilgfinancial.com\/staging\/2370\/wp-content\/uploads\/2022\/07\/copy-space-health-account-finance-investment-business-fund-money-concept-medical-save-financial-hsa_t20_NWn3Wn-300x200.jpg 300w, https:\/\/ilgfinancial.com\/staging\/2370\/wp-content\/uploads\/2022\/07\/copy-space-health-account-finance-investment-business-fund-money-concept-medical-save-financial-hsa_t20_NWn3Wn-400x267.jpg 400w, https:\/\/ilgfinancial.com\/staging\/2370\/wp-content\/uploads\/2022\/07\/copy-space-health-account-finance-investment-business-fund-money-concept-medical-save-financial-hsa_t20_NWn3Wn-600x401.jpg 600w, https:\/\/ilgfinancial.com\/staging\/2370\/wp-content\/uploads\/2022\/07\/copy-space-health-account-finance-investment-business-fund-money-concept-medical-save-financial-hsa_t20_NWn3Wn-768x513.jpg 768w, https:\/\/ilgfinancial.com\/staging\/2370\/wp-content\/uploads\/2022\/07\/copy-space-health-account-finance-investment-business-fund-money-concept-medical-save-financial-hsa_t20_NWn3Wn-800x535.jpg 800w, https:\/\/ilgfinancial.com\/staging\/2370\/wp-content\/uploads\/2022\/07\/copy-space-health-account-finance-investment-business-fund-money-concept-medical-save-financial-hsa_t20_NWn3Wn.jpg 1025w\" sizes=\"(max-width: 501px) 100vw, 501px\" \/>The average couple retiring today needs a whopping $315,000 to cover the cost of health care throughout their retirement.<\/span><span class=\"CCFootChar\"><span style=\"font-size: 8.0pt;\">1<\/span><\/span><span style=\"font-size: 11.5pt;\"> <b>You\u2019ll want to plan for those future health costs.<\/b> Have you considered that your HSA (Health Savings Account) can be more than just a medical savings account? Your HSA investment options can help you save for doctor visits\u00a0<em><span style=\"font-family: 'Calibri',sans-serif;\">and<\/span><\/em>\u00a0prescriptions, plus create an additional tax-free cash flow to pay for expenses during retirement.\u00a0<\/span><\/p>\n<p class=\"CCParagraph\" style=\"margin-left: 22.5pt;\"><b><span style=\"font-size: 11.5pt;\">Take a look at these four tax benefits of an HSA: <\/span><\/b><\/p>\n<p class=\"CCParagraph\" style=\"margin-left: 22.5pt;\"><span style=\"font-size: 11.5pt;\">First, your contribution is tax-deductible. <\/span><\/p>\n<p class=\"CCParagraph\" style=\"margin-left: 22.5pt;\"><span style=\"font-size: 11.5pt;\">Second, once inside your HSA, your money grows tax-free. <\/span><\/p>\n<p class=\"CCParagraph\" style=\"margin-left: 22.5pt;\"><span style=\"font-size: 11.5pt;\">Third, when used for eligible healthcare costs, withdrawals are tax-free. <\/span><\/p>\n<p class=\"CCParagraph\" style=\"margin-left: 22.5pt;\"><span style=\"font-size: 11.5pt;\">Fourth, you can keep the account even in retirement to pay medical bills.<\/span><\/p>\n<p class=\"CCParagraph\"><b><i><span style=\"font-size: 11.5pt;\">BONUS: Your HSA can lower your tax bill by reducing your taxable income. For example, if you put $2,000 into an HSA in a year, you lower your taxable income by $2,000!<\/span><\/i><\/b><\/p>\n<p class=\"CCParagraph\"><span style=\"font-size: 11.5pt;\">An HSA is a <b>tax-advantaged savings account<\/b> paired with a high-deductible health plan (HDHP) that can help you pay for medical expenses\u2014both now and in the future.\u00a0Your HSA usually starts as a cash account, which earns interest like a savings account. But once you reach a certain balance, you can change your HSA into an investment account, which functions like an IRA.\u00a0<\/span><\/p>\n<p class=\"CCParagraph\"><b><span style=\"font-size: 11.5pt;\">1. Lower monthly premiums help you save money.\u00a0<\/span><\/b><\/p>\n<p class=\"CCParagraph\"><span style=\"font-size: 11.5pt;\">Having an HSA-qualified, high-deductible health plan means you\u2019ll pay less monthly premiums than a traditional health plan. The downside of a higher deductible is that you\u2019ll need to pay more before your insurance kicks in.\u00a0<\/span><\/p>\n<p class=\"CCParagraph\"><b><span style=\"font-size: 11.5pt;\">2. HSAs come with some fantastic financial benefits.\u00a0<\/span><\/b><\/p>\n<p class=\"CCParagraph\"><span style=\"font-size: 11.5pt;\">Many people contribute to their HSA like a savings account, putting money in and letting it sit until they need it, then pulling it back out. <\/span><a href=\"https:\/\/www.experian.com\/blogs\/ask-experian\/how-to-invest-hsa\"><span style=\"font-size: 11.5pt;\">Currently, only about 9% of HSAs are invested<\/span><\/a><span style=\"font-size: 11.5pt;\">.<\/span><span class=\"CCFootChar\"><span style=\"font-size: 8.0pt;\">2<\/span><\/span><span style=\"font-size: 11.5pt;\"> You can make your HSA work for you by investing the money in stocks, bonds, ETFs, and mutual funds to encourage growth. <i>(If your work-sponsored plan doesn\u2019t offer this option, you can transfer the funds to a personal HSA.) <\/i><\/span><\/p>\n<p class=\"CCParagraph\"><span style=\"font-size: 11.5pt;\">Important Note:<i> <\/i>Going this route may require you to pay for immediate medical expenses another way and then reimburse yourself later from your invested HSA. When you turn 65, that HSA will perform like a traditional IRA\u2014you can take the money out for whatever you like, but you\u2019ll have to pay taxes.<\/span><\/p>\n<p class=\"CCParagraph\"><b><span style=\"font-size: 11.5pt;\">3. You own your HSA, and it rolls over each year.<\/span><\/b><\/p>\n<p class=\"CCParagraph\"><span style=\"font-size: 11.5pt;\">The great thing about an HSA is that it\u2019s entirely yours.\u00a0Those funds are yours to use for qualified expenses. Your HSA balance rolls over year-to-year, giving you access\u00a0to the money in the account.\u00a0<\/span><\/p>\n<p class=\"CCParagraph\"><span style=\"font-size: 11.5pt;\">On the flip side, at 65, you become eligible for Medicare coverage. Once you enroll in Medicare, you can\u2019t contribute to your HSA anymore, but you can still use the money in your HSA tax-free for medical expenses. That makes using an HSA a perfect option for covering health costs in your retirement years.<\/span><\/p>\n<p class=\"CCParagraph\"><b><span style=\"font-size: 11.5pt;\">It\u2019s worth noting that having an HSA<\/span><\/b><b><span style=\"font-size: 11.5pt;\"> also means there\u2019s no minimum distribution, so you can keep the money in your HSA as long as you like.<\/span><\/b><\/p>\n<p>Preparing for medical and other expenses during retirement takes insight and expertise, and we\u2019re here to help. Call us today at <a href=\"tel:540-720-5656\">(540) 720-5656<\/a> and let\u2019s talk.<\/p>\n<hr \/>\n<ul>\n<li class=\"CCFooter\">Adapted from CNBC.com<span class=\"CCFootChar\">1<\/span><\/li>\n<li class=\"CCFooter\">Adapted from Investors.com<span class=\"CCFootChar\">2<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>The average couple retiring today needs a whopping $315,000 to cover the cost of health care throughout their retirement.1 You\u2019ll want to plan for those future health costs. Have you considered that your HSA (Health Savings Account) can be more than just a medical savings account? Your HSA investment options can help you save for doctor visits\u00a0and\u00a0prescriptions, plus create an additional tax-free cash flow to pay for expenses during retirement.\u00a0 Take a look at these four tax benefits of an HSA: First, your contribution is tax-deductible. Second, once inside your HSA, your money grows tax-free. Third, when used for eligible healthcare costs, withdrawals are tax-free. Fourth, you can keep the account even in retirement to pay medical bills. BONUS: Your HSA can lower your tax bill by reducing your taxable  [&#8230;]<\/p>\n","protected":false},"author":48,"featured_media":42414,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[3267],"tags":[],"class_list":["post-42413","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hsa"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Making the Most of Your HSA - ILG Financial<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ilgfinancial.com\/making-the-most-of-your-hsa\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Making the Most of Your HSA - ILG Financial\" \/>\n<meta property=\"og:description\" content=\"The average couple retiring today needs a whopping $315,000 to cover the cost of health care throughout their retirement.1 You\u2019ll want to plan for those future health costs. Have you considered that your HSA (Health Savings Account) can be more than just a medical savings account? Your HSA investment options can help you save for doctor visits\u00a0and\u00a0prescriptions, plus create an additional tax-free cash flow to pay for expenses during retirement.\u00a0 Take a look at these four tax benefits of an HSA: First, your contribution is tax-deductible. Second, once inside your HSA, your money grows tax-free. Third, when used for eligible healthcare costs, withdrawals are tax-free. Fourth, you can keep the account even in retirement to pay medical bills. 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Have you considered that your HSA (Health Savings Account) can be more than just a medical savings account? Your HSA investment options can help you save for doctor visits\u00a0and\u00a0prescriptions, plus create an additional tax-free cash flow to pay for expenses during retirement.\u00a0 Take a look at these four tax benefits of an HSA: First, your contribution is tax-deductible. Second, once inside your HSA, your money grows tax-free. Third, when used for eligible healthcare costs, withdrawals are tax-free. Fourth, you can keep the account even in retirement to pay medical bills. 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