Health Savings Account

A health savings account is a tax-free saving account that is very similar to an individual retirement account. It is designed to pay off any medical expenses that you may incur as the account holder. This money can be easily withdrawn via a check or debit card whenever you need them for paying your routine medical necessities. These expenses are tax-deductible if you are self-employed.

The reason why a health savings account is so attractive is because it has a low deductible. This is something that almost everyone can benefit from because you can easily pay for any substantial medical costs. Plus, the cost of a health savings account is really low and yet there is high tax-deductibility. It also collects interest if you do not withdraw or use the account. Once you retire, you can also use this as an additional income.

For these reasons, many people are starting to split the money that they are spending on their conventional health plan and putting some of it towards a health savings account. You will then have some money available for your smaller medical expenses that you may need on a daily basis. This will leave your high deductible insurance policy available for paying any high cost medical bills that you may have incurred.

In order to be eligible for a health savings account you will need to be under 65-years-old and have a high-deductible health insurance policy. This insurance policy will have to be one that is eligible for this type of an account. As such, your health insurance plan will need to have a deductible of at least $1,100 for individual coverage. It will be $2200 for a family. If you do qualify for this type of a policy, it will be very beneficial to you for paying routine medical bills.

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