HSAs are a great way to create long term savings that you can use today, tomorrow and for years to come. Here is how to maximize your HSA savings and value.
Health savings can be made simple, automated and easy. With automated payroll contributions, once you set it up, there is nothing to worry about. Money is debited from your account every month and added to your HSA. In addition, triple tax advantages (tax-deductible contributions, tax-free interest and tax-free withdrawals (for medical expenses)) mean you can use tax-free money from your HSA to pay for health expenses.
Watch Out For Hidden Fees
Traditional HSA providers hidden fees that are literally stealing from health savings future. Fees like monthly maintenance, debit card or ATM transactions, check processing, copy of statements, legal, account closure, and debit card replacement are common in the industry. These funds are pulling directly from your HSA savings. Over time they can really add up. But don’t worry, if you use Lively, we are 100% cost transparent and don’t believe in nickel and diming our customers.
According to a recent study, most HSAs are used as a “checking account” for healthcare expenses, much more than an investment tool. Investments provide a great tool to dramatically increase the long term value of your HSA and save for health costs or retirement over the long term. Remeber, after 65 years of age, you can use your health savings account (HSA) money non-health related expenses. It’s just another interest bearing account similar to your 401k or IRA. Combine that value with accrued compound interest and the value of your HSA can really add up! If you want to see what that this looks like with real dollars, check out our interactive HSA calculator and give it a go for yourself.
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.