Healthcare can be expensive. But it becomes a bit easier to manage if you have a dedicated savings account you could use specifically for medical products and services. There are many benefits of opening a Health Savings Account in Reno, Nevada, but it mostly comes down to making healthcare more affordable for you and your family.
What is a Health Savings Account (HSA)?
A Health Savings Account, or more commonly known as an HSA, is a special type of savings account where you can contribute pre-tax money to pay for qualified medical expenses down the road. It’s there when you need it. And if you don’t need it, it simply continues to grow.
Unlike insurance plans where you pay a monthly premium whether you use the insurance or not, when you open a Health Savings Account in Reno, it ensures that every dollar you put into the account can be put to good use.
Cover a wide array of healthcare products and services
An HSA isn’t your standard savings account. You can only use the funds to purchase medical products and services. However, your Health Savings Account in Reno covers a wide array of medical expenses, including:
- Prescriptions
- Over-the-counter medications
- Qualifying medical equipment
- Copays
- Deductibles
- Coinsurance
And unlike insurance, you can use your HSA regardless of what plan you enroll in — even for qualifying vision and dental expenses. You don’t have to worry about whether a doctor’s office is in your network or not.
However, there are rules for using your HSA. You can only purchase qualifying services and products. Before using HSA funds, check with your provider to ensure the products or services qualify.
Employer contributions
The key to any type of savings account is making regular contributions. With if you’re enrolled in a high-deductible health plan (HDHP), you can make personal contributions to your HSA up to a specific amount based on your number of dependents. But what separates an HSA from a regular savings account is the ability for employer contributions.
You can set up your Health Savings Account in Reno, Nevada in a way that your employer can also contribute, increasing your HSA funds even more.
Earn tax-free interest
One of the main benefits of opening a Health Savings Account in Reno is that you can avoid paying additional taxes on your qualifying medical expenses and any interest you may receive on the account.
All the interest you earn on your HSA is completely tax deferred. And even better, withdrawals from your HSA are also 100% tax-free if used to pay for eligible medical expenses.
Without needing to pay additional taxes, you can easily afford more healthcare expenses than you could if you simply paid out of pocket. Contact your accountant for more specific tax advice regarding HSAs.
Funds roll over
Don’t need to use your HSA funds? No problem. All your contributions roll over year after year. You never have to worry about losing your funds. And once you reach 65 years of age, you can withdrawal the funds and use them for any purpose without penalty!
How to open a Health Savings Account in Reno
HSAs are a great way to pay for healthcare expenses without going out of pocket. And with employer contributions and tax benefits, you can save even more money than you would with a standard savings account.
If you want to set up a Health Savings Account in Reno for yourself or your family, contact the experts at Health Benefits Associates. We’ll help you find the perfect HSA to suit your needs and help make healthcare more affordable.
