IYKYK: Secrets To Getting The Most From Your Health Savings Account
The Health Savings Account (HSA) may be the most underrated financial savings vehicle out there.
Why, you ask?
HSAs offer a rare triple tax benefit.
This makes HSAs more tax-efficient than even a 401(k) or Roth IRA, which either offers a tax break when you contribute or when you take money out, but not both. The tax advantages alone can make your money go significantly further, especially over time.
There are no restrictions on when you can take money out of an HSA.
Let's discuss how you can use these rules to your advantage.
Step 1: Determine if you're eligible to use an HSA.
Step 2: Maximize your contributions.
Step 3: Manage your withdrawals.
An HSA is more than just a medical account, it's a unique combination of tax savings, investment potential, and future healthcare funding. Whether you're looking to save money on this year's taxes or invest for long-term care costs, with smart contributions, disciplined investment, and proper recordkeeping, you can turn this underappreciated account into one of your most valuable financial tools.
*You can use both an HSA and an FSA in the same year if your FSA is limited purpose and only reimburses you for dental and vision expenses.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Bloomberg
an hour ago
- Bloomberg
Stock Movers: Signet, Constellation, Dollar General
On this episode of Stock Movers: - Signet Jewelers (SIG) shares climb 14% in premarket trading after the owner of Kay Jewelers boosted its adjusted earnings per share forecast for the full year, following first-quarter results that was ahead of expectations. - Nuclear stocks gain in US premarket trading after Constellation Energy (CEG) agreed to sell power from an operating nuclear plant in Illinois to Meta Platforms, an agreement that could lead to the construction of a new reactor at the site. - Dollar General (DG) slightly increased its annual guidance after the first quarter topped projections. The discount chain also said it expects to mitigate a significant amount of the tariffs currently in place. The company sees same-store sales gaining as much as 2.5% this fiscal year, up from guidance in March calling for an increase as high as 2.2%. The retailer also nudged up expectations for earnings per share.
News24
an hour ago
- News24
Buyers storm SA bond auction —R18bn bids for R4bn issue
Be among those who shape the future with knowledge. Uncover exclusive stories that captivate your mind and heart with our FREE 14-day subscription trial. Dive into a world of inspiration, learning, and empowerment. You can only trial once.
Forbes
2 hours ago
- Forbes
Amazon, A Small Pharmacy Player, Seeks To Dent CVS And Walgreens Medicare Share
Amazon Pharmacy is rolling out new features in hopes of attracting more seniors covered by Medicare's drug benefit, a potentially lucrative market dominated by CVS Health and Walgreens. In an announcement Tuesday, Amazon said it is launching a new 'caregiver support feature' that allows its customers to have someone else manage medications on their behalf. Once the caregivers are verified through a secure invitation, 'caregivers can now manage medications for their loved ones,' the company said. In addition, customers with Medicare Part D drug coverage can now access PillPack, Amazon's online pharmacy that is designed to simplify medication management, particularly for multiple prescriptions via pre-sorted and labeled packets delivered directly to patients' doors. It's the latest effort by the online retail giant Amazon to invest in its pharmacy business, which Drug Channels Institute estimates generated 'less than $2 billion in 2024 revenue - just 0.3% of the total prescription dispensing market.' Amazon doesn't disclose how many prescriptions it fills or financial information regarding its pharmacy and healthcare businesses. Amazon, which purchased PillPack seven years ago this month for more than $750 million, has yet to disclose revenues for its Amazon Pharmacy business in the parent company's quarterly earnings statements. In contrast, CVS filled 435 million prescriptions in the first quarter for an increase of 4.3% from the year ago period while Walgreens filled more than 309 million prescription in its most recent quarter, up 3.4%. Combined, Walgreens and CVS generated more than $370 billion in prescription revenues last year, According to Dryg Channels. CVS and Walgreens have the largest share of the U.S. prescription market by most measures at a combined 40% while Amazon's share is less than 1%, according to some studies. Neither CVS nor Walgreens would disclose how many Medicare Part D prescriptions the companies fill. By adding features for seniors, Amazon Pharmacy is looking to tap a Medicare prescription market growing by thousands every day. More than 11,000 Americans are turning 65 every day. Amazon is also trying to find a niche with Americans who are caring for an elderly family member. More than 50 million people in the U.S. 'are taking care of an aging family member,' Amazon said citing data from AARP. The aging population, coupled by industry statistics showing up to one-third of Americans don't take their medications as directed or never fill them. 'These updates deliver what our customers have been asking for—simpler medication management for themselves and their loved ones,' Amazon Pharmacy vice president John Love said. 'Whether you're a caregiver juggling multiple prescriptions for an aging parent, or a customer who could benefit from the convenience of pre-sorted packets delivered reliably each month, we're removing barriers and making pharmacy work better for you.'
