How to Use Your HSA as an Emergency Fund
If you have access to an HSA, you probably have already heard that it’s a great tax-advantaged retirement pool. But how? The Benefits of an HSA There are three main benefits of using a health savings account. Each of these benefits share one common theme: there are tax advantages. 1. Your Contributions Are Not Taxed When you contribute to an HSA through your employer, this comes out before taxes (like your medical insurance or 401k contributions). 2. HSA Earnings and Interest Are Not Taxed. Ever. Whether you keep your health savings account funds in low interest funds or high growth funds, you will have some earnings. But all of these earnings are and continue to grow tax-free. 3. Distributions From Your HSA Are Tax-Free As long as your health savings…
