Saving for retirement, paying down credit card debt, having enough money for college are popular financial topics, but a recent CNBC article notes that some experts believe many people are forgetting about a powerful tool to help with medical expenses – the Health Savings Account.
Author Anna Robaton argues in her article “Health savings accounts: A second retirement plan”
that the Health Savings Account (HSA) is an underutilized tool that provides a “triple tax-advantaged” way for paying for future medical costs.
An HSA is a tax-advantaged savings account for current and/or future qualified medical expenses. It was created by the Medicare Modernizations Act of 2003 and allows pre-tax contributions, investments in the HSA grow tax-free, and distributions are tax-free if used for qualified medical expenses.
Plus, health savings accounts can be self-directed through Equity Trust. Investors can invest in assets such as real property, tax lines, precious metals and more with the HSA.
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