4 thoughts on “What Is A Health Savings Account (HSA)? What Are The Tax Benefits of An HSA?

  1. Nice summary. My wife and I both have HSA’s and have had them for about 10 years now. Sometimes they are criticized as being for the “healthy and wealthy”, but since the “wealthy” pay an outsized portion of the taxes in the US, I think it is justifiable. Tom

    • Thanks Tom! Much appreciated. There is nothing wrong with saving and maximizing your tax savings, in my opinion! Glad you’ve been doing it for 10 years here. That dividend income from the HSA account must be very nice!


  2. I’m a relatively healthy young adult in the first 5 years of my career, and as soon as I got access to an HSA I began maxing that out. Whenever I have a small co pay or lab test, I pay out of pocket and save the receipts because those receipts have NO EXPIRATION DATE. You can take them as a deduction at any time when reimbursing yourself from your HSA. What that means, is that you can let your funds in the HSA grow tax free until you’re good and ready to take them out. I plan to use my healthiest years while I have relatively low expenses (no kids) to just pay out of pocket, and save those receipts to take as deductions.

    • That’s really interesting David. I didn’t realize that you can defer reimbursement for the expenses. That’s good to know, especially going forward. Not a bad strategy to consider. Just make sure you don’t lose those receipts haha One interesting idea is that you are paying the taxes on a lower tax rate at the beginning of your career and getting the reimbursement in a later year when you are earning more. Thanks again for sharing this with me!


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