7 HSA Principles #doctor #physicianfinance #financialplanning #investing #personalfinance

Seven principles to guide you in using your health savings account. Principle number one is that your HSA is your only triple tax free account, so use it. Principle number two is that an HSA should be allowed to compound for as long as possible. Principle number three, of course, is that HSA dollars are best spent on health care, right? If you don't spend it on health care, at a minimum, you'll be paying taxes on it. Principle number four, as I mentioned, is spend your HSA prior to death unless you're planning to leave it to charity. Principle number five is HSA dollars do not have to be withdrawn in the same year as the health care expense. Principle number six, the higher your tax rate, the more beneficial it is to use the HSA instead of non qualified or taxable dollars. And lastly, as a general rule, an HSA is not protected from your creditor.