When it comes to managing healthcare costs in the United States, you have many options. Beyond standard health insurance, you can fund specialized accounts to prepare for unplanned expenses. One such option is a health savings account (HSA).

Not sure if an HSA is right for you? Here are some reasons why these accounts are well worth the investment.

Savings Now and in the Future

One of the most significant benefits of an HSA is saving money now and in the long haul. To open an HSA, you must have a high-deductible health plan (HDHP). HDHPs come with a lower monthly premium, which is advantageous for generally healthy people.

If you're healthy enough not to need medical care during the year, why pay a large deductible? Instead of spending too much on your insurance, you can invest more into an HSA.

Full Control Over Healthcare Costs

Another big perk is that an HSA is entirely self-funded and self-managed. It's not tied to your employer. Even if you change insurance plans, you'll still have access to your funds.

You're free to put in as much as the HSA contribution limit dictates. In 2021, the limit was $3,600 for individuals and $7,200 for families. However, the terms could change in the future. For more information about HSA contribution limit, visit the website.

Generous Tax Benefits

An HSA comes with several fantastic tax benefits. First, all of your contributions are tax-free. The same goes for qualifying medical expenses that you withdraw. On top of all that, you can claim tax deductions for the contributions you make!

The Opportunity for Growth

With the right HSA broker, your funds can grow over time. There's no time limit on when you have to use your money. It rolls over automatically every year and remains until you have to use it.

Many HSAs invest in many financial products, resulting in substantial growth over time. Best of all: That growth is tax-free, too!

Start Investing Now

As you can see, opening an HSA comes with many great perks! Take some time to find a plan that works for your needs. Once you find it, you can meet the HSA contribution limit, maximize your funds, and plan for future healthcare costs.

Read a similar article about HSA administration here at this page.