Many Americans are aware of the tax benefits such as individual retirement accounts, or 401(k) savings plans; but the less-known HSA can provide some major tax relief. Here are three ways:
- Tax-free contributions. All money you set aside for your HSA from your paycheck each time goes into your HSA account without the financial burden of paying taxes.
- Tax-free growth. Unlike other savings vehicles, your HSA grows tax-free. You won’t need to worry about paying taxes on the interest you’ve earned in your HSA.
- Tax-free distributions. Funds spent from an HSA are not taxed as long as they’re spent on qualified medically-related expenses such as doctors’ visits, dental and vision, etc.
To learn more about HSA tax advantages and how they can benefit you and your situation, give us a call!
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