Don’t Forget about Health Savings Accounts to Combat High Medical Costs

By Brendan Hughes0 Comments

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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