What if you could tuck money away and let it grow tax free until retirement? Sounds like an IRA or 401(k) plan, right?
Well you can add to those plans with the “Medical IRA” better known as a Health Savings Account (HSA). In this case you can put money away and earmark it solely for unreimbursed medical expenses that are subject to a specific kind of employer sponsored Group Insurance policy with a high deductible. What you don’t use for medical expense can be saved until retirement. Along the way you save on taxes in three ways:
1) Money going into the account is tax deductible
2) Interest on the account is not taxed as income in the current year it’s earned
3) Money spent on unreimbursed medical expenses in not taxed then either
If you’d like to learn more about HSAs give us a call.