Many Americans are aware of the tax benefits from certain savings accounts such as individual retirement accounts, or 401(k) plans; but the less-known HSA can provide some major tax relief. Here’s three ways:
1. Tax-deductible contributions. All money you set aside for your HSA from your paycheck goes into your HSA account without the financial burden of paying taxes.
2. Interest is earned tax-free. Don’t worry about paying any taxes on the interest you’ve earned in your HSA like you would in other saving vehicles – interest is never taxed.
3. For medical expenses, account withdrawals are tax-free. From acupuncture to new prescription glasses; your HSA can be used for most medically-related expenses. Withdrawing money from your account to pay for these allows you to skip taxes – again.1
What other tax benefits can you implement to better your financial situation? Give us a call and we can help you achieve reduced taxes.
This information within this document is for informational purposes only and does not constitute legal or tax advice. One should consult a legal or tax professional regarding their own unique situation.
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