HSA Investment Can Help Combat Inflation and Rising Healthcare Costs!

HSA Investment

Inflation and steadily rising healthcare costs have everyone looking for ways to cut costs and save money. A great way to combat these issues is to adopt a Health Savings Account (HSA) benefit plan for your employees.. Not only do HSAs help participants with the cost of healthcare related expenses, their benefits go beyond what many people realize. HSA investments and their triple tax advantage makes them a powerful tool to save money now and for the future.

One of the biggest benefits of an HSA is the triple tax advantage. What does that mean? Triple tax advantage means that contributions go into the account tax-free. Existing funds grow tax-free when invested, and withdrawals are tax-free when used for qualified medical expenses. That’s a lot of savings! Plus, after the age of 65, withdrawals for non-qualified medical expenses are no longer penalized the same way and are simply taxed at your regular income tax rate.

HSA investment is another unique benefit of the account. Once a participant contributes to their HSA, those funds can be invested in a variety of ways, allowing them to experience tax-free growth and have more money to spend on healthcare expenses in the future! Healthcare costs have only gone up, and with rising costs across the board, tax-free growth is a significant benefit.

HSAs are also unique in that the money is the account holder’s. Unlike Flexible Spending Accounts, which may only allow a certain amount of leftover money to roll over year-to-year or even force participants to use the funds by the end of the plan year, the money in an HSA is theirs forever. They can use the HSA balance when needed or let it grow. It’s up to the account holder!