It’s no secret that the tax advantages of health savings accounts contribute significantly to making them the lowest net cost healthcare option for many Americans. Tax advantages include:
- 100% “above the line” deduction for each dollar contributed
- tax-deferred growth
- tax-free withdrawals for qualified medical expenses
The value of those tax benefits is likely to increase in the future, as Money’s Janice Revell explains in this excellent article:
Why your tax rates are likely to rise in the future
Although the article does not focus on HSA accounts, the implications for HSA participants is clear: As tax rates rise in the coming years, the value of an HSA plan will increase by a proportionate amount.
Today’s a good day to get started saving with a health savings account!