Advantages of a Health Savings Account
Some advantages of setting up and using a health savings account include:
– You can decide for yourself the amount of money to deposit into the account for medical expenses
– Your employer would contribute to your health savings account, but the account and money are yours, even when you change the company
– You can decide how to spend the money in the account
– You do not have to pay taxes on the money deposited into the health savings account
– Any unused balance at the end of the year can roll over for use in the next year
– Some health savings accounts invest the fund in financial products or mutual funds or offer interests on the unused balance. The earnings from these services are also free of taxes. [3]
