Coach Jean walks through Health Savings Accounts for high-deductible plans. HSAs offer triple tax benefits: contributions are pre-tax, growth is tax-free, and qualified withdrawals are tax-free. After 65, you can withdraw for anything penalty-free, and money rolls over forever.
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Hello everyone and welcome back to the.
New retirement YouTube channel where we help.
You take financial wellness into your own hands with our Do It Yourself financial planning software.
I'm Coach Jean, a financial wellness coach.
Here, and today we're delving into a.
Financial tool that is both powerful and underutilized, the Health Savings Account, or hsa.
Contributing to an HSA is the fourth play in our savings prioritization series. Be sure to watch the preceding videos.
To learn more about our method of.
Savings prioritization that we lovingly refer to as the Playbook. So let's kick things off by understanding what an HSA is. An HSA is a tax advantage savings account designed for those with high deductible health plans. That being said, this savings option is not for everyone, but if you have a high deductible health plan, an HSA could be a good option for you. An HSA is a triple threat financial tool offering tax benefits, flexibility and the.
Potential for long term growth.
Now the first major benefit is the triple tax advantage.
Contributions to an HSA are tax deductible, meaning they reduce your taxable income. The money in the account grows tax.
Free and qualified withdrawals for medical expenses are also tax free.
It's the trifecta of tax benefits. The second advantage is the flexibility of contributions.
You decide how much to contribute and.
You'Re not penalized for using the funds.
In a given year.
The money rolls over indefinitely creating a.
Powerful tool for long term health and financial planning.
The third benefit is the investment potential.
Many HSA providers allow you to invest your contributions once you reach a certain balance. This means that HSAs can function as an additional retirement savings account offering the.
Potential for long term growth.
Beyond the immediate tax advantages, an HSA.
Is a fantastic tool for saving for future medical expenses.
From routine checkups to unexpected emergencies, having.
A well funded HSA provides a financial safety net for your health.
Consider your HSA a unique retirement planning tool.
Once you hit 65, you can withdraw your funds for non medical expenses without penalty.
This flexibility makes the HSA a versatile.
Addition to your retirement portfolio.
Contributing to an HSA is a strategic.
Move for your health and wellness.
This triple tax advantage, the flexibility and the investment potential make a unique financial tool.
Another powerful financial tool that should not.
Be overlooked is new Retirement's financial planning software.
Our financial planning software can help you forecast each each of the savings options.
We discuss within this series.
Personally, my favorite aspect about the Planner is that it's free. Once you become a financial fanatic, you will want to upgrade your subscription which allows for additional inputs and insights. Get started@newretirement.com today. As always, if you found this information.
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