With the IRS raising Health Savings Account (HSA) contribution limits for 2025, these accounts are now more valuable than ever. Open enrollment season is the perfect time to explore how they can enhance your savings strategy.
In her recent article, Cat Torres explains how HSAs provide a unique triple tax advantage: pre-tax contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. Despite their benefits, many eligible individuals underutilize HSAs, often because of misconceptions like the "use-it-or-lose-it" myth.
Cat emphasizes HSAs' dual role as both a tool for managing immediate health care costs and a long-term savings vehicle, particularly for retirement, offering unmatched tax advantages compared to other retirement accounts.
To boost HSA participation, Cat advocates for employer-driven education and incentives. Employers can dispel myths, integrate HSAs into financial wellness programs, and demonstrate their value as a key employee benefit. By increasing awareness and understanding of HSAs, individuals can better leverage them to address rising health care costs and secure their financial future, both now and in retirement.
"Many consumers are under-educated about the advantages of HSAs, leading to underfunded accounts and missed investment opportunities."
Interested in learning more? Check out the full BenefitsPRO article here.
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