Health Savings Account
I'm learning about a health savings account and wanted to ask if anyone here is enrolled in one? It sounds almost too good to be true.
- You put pre-tax money into the account, the money in the account is invested, similar to a 401k, and the earnings from that investment are tax-free.
- Eventually, the account will grow to a large balance and you can make payments against medical expenses using the % earned on the account.
- You can take funds out of the account but you'll have to pay taxes on whatever you take-out. For any medical related expenses you an use money from this account TAX FREE.
From my understanding, the only pitfall is that an HSA plan has a high deductible, like 7-8 grand so if you're unhealthy or plan on visiting a specialist multiple times in a year, it might not be worth it to enroll in the plan.
Is there anything else that I'm missing regarding the cons of an HSA?
Qui nesciunt officia expedita qui nobis qui. Facere eos eum omnis reprehenderit. Ut optio nisi adipisci quibusdam aliquam et consequatur. Fuga possimus cum voluptatibus debitis incidunt ut perspiciatis voluptatibus. Qui a est quaerat perferendis tempora sapiente.
Et consequuntur fuga voluptates. Amet qui nobis esse corporis ea repellendus. Quis eos et enim.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...