The Powerful Benefits of a Health Savings Account (HSA)
Healthcare costs can add up quickly, but with a Health Savings Account (HSA), you can save smartly for both immediate and future medical expenses. With tax advantages, flexibility, and the ability to roll over funds year after year, an HSA is a powerful tool to help you take control of your healthcare spending and build financial security.
By UFirst Credit Union | December 10, 2024
What is a Health Savings Account?
An HSA is a tax-advantaged account designed to help individuals with a high-deductible health plan (HDHP) save money for qualified medical expenses. Contributions are made with pre-tax dollars, meaning you reduce your taxable income while building savings to cover expenses like deductibles, prescriptions, and more.
Whether you’re managing current medical costs or saving for future needs, an HSA offers tax-advantaged flexibility and peace of mind.
The Key Benefits of an HSA
Tax Advantages
- Pre-tax contributions- the funds allocated to your HAS are not taxed
- Tax-free growth- you earn interest or investment returns without taxes
- Tax-free withdrawals- use funds for eligible medical expenses without additional tax
Flexibility and Control
- Funds roll over each year—no “use it or lose it” policy
- You decide how and when to use your savings
- Accounts stay with you even if you change jobs or health plans
A Future-Ready Savings Tool
HSAs aren’t just for immediate needs. They’re a great way to save for future healthcare expenses, including costs in retirement. With no expiration on funds, your account can grow with you.
Wide Range of Eligible Expenses
Use your HSA for:
- Doctor visits, deductibles, and copays
- Prescription medications
- Dental and vision care
- Medical equipment
- And more
Convenience
- Easy access with an HSA debit card
- Simple tracking and management of healthcare spending
- Utilize UFirst's Free Credit Report
Is an HSA Right for You?
To qualify for an HSA, you must be enrolled in a high-deductible health plan and meet a few other criteria. If you’re eligible, an HSA can be an excellent tool to take control of your healthcare spending while building a financial cushion for the future.
An HSA is more than a savings account—it’s a powerful resource to manage today’s healthcare expenses and prepare for tomorrow’s needs. Take advantage of the tax benefits, flexibility, and long-term savings potential.
Contact us today to get started with an HSA account.
