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Health Savings Account

If an HSA were an athlete, it would be considered a triple threat option


We've written about Health Savings Accounts (HSAs) in the past (read: Hooray for HSAs), but it is a good subject to revisit since these accounts have numerous tax benefits. Not to mention, they are a valuable tool to help offset rising medical costs.


Often, tax-efficient strategies consist of either lowering a tax bill or deferring taxes to a later period. Tax avoidance is typically a red flag.


HSAs are a different animal. They come with triple tax benefits.


  1. Contributions can be used with pre-tax dollars which lowers your taxable income

  2. Appreciation and income from invested funds grow tax-free

  3. Funds used for qualified medical expenses are not taxed when withdrawn

There you have it. Beneficial tax treatments for three stages of saving and spending on qualified medical expenses.


In order to utilize an HSA, you (or your spouse) must be enrolled in a high-deductible insurance plan.


See our recent post about 2024 contribution limits.


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Statistical information, quotes, charts, references to articles or any other quoted statement or statements regarding market or other financial information is obtained from sources which we believe reliable, but we do not warrant or guarantee the timeliness or accuracy of this information. All rights are reserved.  No part of this blog including text, graphics, et al, may be reproduced or copied in any format, electronic, print, et al, without written consent from Jackson Creek Investment Advisors LLC.  Nothing contained herein constitutes financial, legal, tax, or other advice.   Please be advised to consult with your investment advisor, attorney, or tax professional before making any investment decisions.

Investment advisory services are offered through Jackson Creek Investment Advisors LLC, a Registered Investment Adviser.

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