Tag Archives: taxex

Why HSA plans are going to be even *more* attractive in the future

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!