Whether you are looking to save for unexpected doctor visits or are planning for future healthcare expenses, Health Savings Accounts (HSA’s) offer a smart and tax-advantaged way to set aside money.

What is an HSA?

HSA’s are the secret weapon to managing your healthcare costs. They are a special type of savings account that lets you set aside money on a pre-tax basis to pay for qualified medical expenses. The money you contribute to your HSA rolls over year after year, so it is always there when you need it. With an HSA, you have more control over your healthcare spending while also saving money in the process.

The Benefits of an HSA

HSA’s are similar to flex spending accounts, However, HSA’s, unlike FSA’s, can be rolled over year after year. Additionally, any interest or investment earnings on your HSA funds are tax-free! Without having to worry about an expiration date by which you must use your funds, HSA's are extremely beneficial for payment of unexpected medical expenses. Finally, HSA's are portable, meaning you can maintain the funds in the account even if you change health plans, get a new job, or retire.

HSA Eligible Expenses

  • First aid supplies
    • Bandages, blood pressure cuffs, compression socks, etc.
  • Over-the-counter drugs
    • Cold and flu medicine, allergy medicine, and pain relievers
  • Feminine hygiene products
  • Fertility and Maternity services
    • IVF, breast pumps, milk storage bags, etc.
  • Glasses, contact lenses, or other vision supplies
  • Addiction and mental health treatment
  • Chiropractor visits and other “complementary” treatments

HSA's are a great option to take charge of your healthcare expenses and save for a healthier future. With HSA's, you have the power to save money on taxes, build a “nest” for unexpected medical expenses, and have peace of mind knowing you are prepared for the unexpected. Explore the world of Health Savings Accounts today with your investment team at BankIowa!

Credible Sources:

HealthCare.gov

aetna

NerdWallet