The rising cost of prescription drugs is enough to make anyone queasy. In the ten years through 2016, the per-person annual cost of medication increased more than 25% after adjusting for inflation. With the per-person cost now above $1,000 a year, one in four respondents to a national survey report they have a tough time paying for prescription meds.
Tag: HSA Spending
A key value of HSAs are tax-free saving and tax-free spending. With one big caveat – all HSA spending, must be used for qualified out-of-pocket medical expenses in order for it to be tax free. So what exactly qualifies under IRS guidelines?
HSAs are in a unique category. They are very similar to the 401(k) or IRA. You can save your money tax-free and let it grow, tax-free.
But unlike a 401(k) or IRA, you can access that money before retirement without penalty. You can use your tax-free contributions for qualified out-of-pocket medical expenses today.