For Some, HSAs Offer a 'Quadfecta' of Tax Benefits
Health savings accounts offer more tax benefits than you may realize.
Last month I said this column would show advisors how to enter the health savings account marketplace to gather assets and then invest and manage those assets. I am postponing that topic because there are still a number of HSA advantages I'd like to discuss further.
To briefly review, an HSA is an individually owned, tax-advantaged savings and investing account used to pay for qualified medical care expenses. An HSA isn't a spending vehicle like a flexible spending account which, in most cases, requires an employee to spend down all the money in it by the end of each year; this "use it or lose it" requirement means contributions generally cannot roll over year after year, unlike HSA assets.