Top 10 Reasons You Should Have An HSA

1. Tax Savings

You can deduct HSA contributions from gross income on your federal tax return, even if you do not itemize deductions. Many states also allow the deduction on state income taxes.

2. Earned Interest

Funds in your HSA grow with tax-deferred interest. 

3. Portability

You own the account, so even if you change jobs, your HSA funds go with you.

4. Affordable Health Coverage

Use your HSA to cover 100% of routine medical expenses like office visits, lab tests, and prescriptions.

5. Reduced Insurance Premiums

Insurance premiums for a high-deductible health plan are usually significantly lower than for a low-deductible health plan.

6. Long-Term Savings

Because HSA funds roll over from year to year, you can let your account balance sit and grow tax-deferred. That’s why HSAs have been referred to as “Medical IRAs" and "Medical 401(k)s."

7. Retirement Bonus

After age 65, you can make withdrawals from your HSA for any reason without incurring the 20% penalty imposed before age 65 for non-medical withdrawals (you do still have to pay taxes on the money withdrawn).

8. Safety Net

There is no “use it or lose it” provision for HSAs, so you can build up your savings to use for major health events.

9. Coverage for "Extras"

You can use HSA funds for expenses that are often not covered by other plans, including COBRA premiums, dental, vision, and much more.

10. Empowerment

You take control of your routine healthcare decisions by choosing the health care and providers that you want.


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