TL;DR
• HSAs are the single most tax-advantageous financial product in the US (even better than a 401k)
• HSAs are made available to you through the Yuzu Plan
More on HSAs
HSAs (”health savings accounts”) have revolutionized the way individuals and families save for healthcare expenses and grow wealth in a supremely tax-advantage manner. Here’s a closer look at the history and features of HSAs:
A brief history
• HSAs were introduced in 2003 as part of the Medicare Prescription Drug, Improvement, and Modernization Act
• The goal was to provide individuals with a tax-advantaged tool to save for medical expenses and promote consumer-driven healthcare
What is an HSA?
• An HSA is a tax-advantaged savings account available to individuals enrolled in a high-deductible health plan (HDHP)
• It allows you to set aside pre-tax dollars to actively invest and accumulate interest, as well as pay for qualified medical expenses such as doctor visits, prescriptions, and other eligible healthcare costs
• HSAs are owned by individuals, providing you with control and flexibility over your funds
Key features of HSAs
• Triple Tax Advantages: Contributions are tax-deductible or pre-tax, growth is tax-free, and withdrawals for qualified medical expenses are tax-free
• Social Security Tax Advantage: HSA contributions are exempt from Social Security taxes (7.65% for employees), providing an additional tax advantage not even available via a 401(k)
• Portable and Flexible: HSAs stay with you, even if you change jobs or insurance plans. You have the freedom to use your funds as needed
• Savings for the Future: HSAs can serve as a long-term savings vehicle for healthcare costs during retirement or unexpected medical needs
• Investment Options: Some HSAs offer investment opportunities, allowing your funds to potentially grow over time
• Contribution Limits: There are annual contribution limits set by the IRS, which are subject to change each year
Benefits of HSAs
• Lower Premiums: Pairing an HSA with an HDHP often results in lower monthly premiums
• Control and Independence: With an HSA, you decide how to spend your healthcare dollars and have the flexibility to choose providers and treatments
• Tax Savings: The tax advantages of HSAs can provide significant savings, reducing your overall healthcare costs
The bottom line
• HSAs have become a valuable tool for individuals and families to take control of their healthcare expenses and grow wealth
• With their tax advantages, portability, and flexibility, HSAs offer the smartest and most efficient way to invest, grow interest, and save for medical needs while enjoying potential savings on insurance premiums and taxes
Contact us
• If you have any questions about any of your health benefits, please text or call us at 203-208-9898, or email us at support@yuzu.health. We will respond to you ASAP, in most cases within minutes.
