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By Lively | September 11, 2017

Automated Health Savings

Isn’t it so great when something just automatically happens for you? No effort, no time wasted, no cornering thoughts. Things go as expected and you can just forget about it. An HSA just might be the easiest and best thing you can do for your health.

HSA Facts

  1. It takes less than 5 minutes to sign up for a Lively HSA
  2. You can make automated payroll contributions with your HSA to save money
  3. You can invest your HSA money and watch it grow for years to come

You can use our HSA calculator to get an idea of the amount of money we are talking about here. But as a quick exercise, if you invested the current individual HSA maximum for 2017 ($3,400), with no employer match, over a 10 year period (assuming 3% interest), the result is almost $40,000 with over $8,000 in tax savings.  This is incredible! An HSA offers a completely automated way to save money for your health.

HSA Clarity

Think of an HSA, like a 401k for healthcare, but better. Better you say? YES! I know this seems like light years away, just like the next season of Game of Thrones, but after the age of 65, you can use an HSA for non-health expenses – just pay income taxes at that time with no penalty, just like an IRA or 401k. In addition and unlike a 401k, you can let your HSA grow well into your 70s, 80s, 90s, etc. because there are no mandatory distributions. What does this mean? You can save your money tax-free and keep it growing for as long as you want. It actually that simple.

But don’t take our word for it. You can read all about the eligibility requirements here, full details regarding tax benefits here, and 2017 IRS HSA guidelines here as well.

HSAs: One More Thing

Saving for health can sound like a tedious affair, likely why many employees and individuals choose to ignore it and quickly select any health plan during open enrollment or forget to couple their high deductible health plan (HDHP) with an HSA. Open an HSA today and get started savings. Its automated and super easy.  So you can go you and spend the rest of your money on whatever you want, you know like, avocado toast.

If you need more help with HSA decisions, check out our blog. We will make you a healthcare benefits expert in no time, without any extra work or effort on your end.