CONTRIBUTING AUTHOR: Jay Geddie
Ahh the HSA… You know, that part of your benefits package many of usually gloss over? Did you know that it may be one of the best forms of investing at your disposal? That’s right!
As you know HSA’s are pre-tax accounts that you use to pay your healthcare costs.
What you may not know, is that you have the option to invest your HSA funds into an HSA Investment Account!
That means that the funds you have sitting in your HSA account can grow year over year and all you have to do is sit back and let compound interest work for you.
It also has a very rare TRIPLE TAX advantage!
What are those tax advantages you ask?
1) Any of your account contributions are tax deductible.
2) Any money you spend on medical expenses are tax free.
3) (and my favorite) ALL earnings, EVEN INVESTMENT RETURNS are tax free!
Plus, if you are thinking down the road, this would be an excellent means to help cover a lot of your health expenses into retirement. Because, let’s face it, as we get older, there will be more doctors’ visits and medication will more than likely be a part of our lives. So wouldn’t it be great to not have to worry about paying any bills out of pocket?
But hey, let’s even say that you’re blessed enough to roll into your later years relatively healthy with little to no health expenses… then what?
Well, the HSA has that covered too!
You can get reimbursed for ANY medical expense from ANY time period.
What do I mean? Lets say it’s 2045 and you have no medical expenses to spend your HSA money on, but you had a medical expense back in 2019 and you saved the receipt… guess what?
You can submit that 26-year-old receipt and be reimbursed, no questions asked!
That’s right… NO QUESTIONS ASKED.
That’s why I encourage everyone to take a picture of any medical bills they get now, email it to themselves and then at some point down the road you can use your HSA account to reimburse you for that charge.
Pretty awesome, right?
Moving forward, let’s no longer look at the HSA as that part of the benefits package we skip. Let’s look at it as another weapon in our financial arsenal!
This is a powerful investment tool that I’ve recently started taking advantage of and I think you should too.