ST Alpha - "Yes, and you definitely* should. -- (edited)" (Reading a Post)

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In response to "Anyone use Health Savings Accounts? I am really thinking about setting one up." by Bacon

Yes, and you definitely* should. -- (edited)

Posted by znufrii Apr 12 '17, 18:14

Any contributions are tax free, whether through payroll deduction or otherwise (payroll deductions are taken out pre-tax, so (iinm) you save on payroll taxes as well, otherwise it's taken as an above-the-line adjustment to income on your 1040, and you have until April 15th to make contributions for the prior year).

You can invest (depending on the options available with the account) and the money grows tax free.

Funds can be withdrawn tax free to pay for or reimburse qualified medical expenses at any time, there's a 10%(?) penalty in addition to taxes due if you withdraw otherwise, however once you reach 65 the penalty goes away, and it's like a traditional IRA (medical expenses are still tax free).

*Not to be construed as official tax or investment advice.

Responses:

One more note -- (edited) - znufrii Apr 12, 18:23 3
- and here's the relevant IRS Pub. -- (link*) - znufrii Apr 12, 18:29
- Thanks for the info -- nm - Epiphany Apr 12, 18:27 1
  - Happy to help! :) -- nm - znufrii Apr 12, 18:32
(and if anyone out there has been on an HDHP and not been using an HSA, you've been missing out on some tax savings) -- nm* - znufrii Apr 12, 18:15

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Yes, and you definitely* should. -- (edited)

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