Health savings accounts are one of the most helpful retirement savings tools. They allow you to put aside money each month that is not subject to federal income taxes and can be used for medical expenses. That means a lot more than just being able to pay for your future medical costs because of the high deductible health plans that most Americans have these days. Here are four benefits of undertaking these accounts.
Dental and Optical Coverage
Another benefit of having dental or eye coverage is flexibility. Most people have a set schedule for when they will go for checkups. If you have no coverage, you may have to go at that time, even if it means paying out of pocket. The savings account can be a way to ensure that you have coverage if you need it at some point in the future.
Travel Insurance
This insurance service is a good option if you travel a lot. It is good to be covered if something happens while you are out of the country, but it can be helpful if you travel with someone who needs coverage or get sick while on the road.
College Savings Account
With a health savings account, you can put away funds not subject to taxes to ensure that you have enough to pay for college. This can be a huge benefit for anyone in a higher bracket that is not contributing to an HSA. It can also benefit anyone in a lower bracket who wants to save more money each month.
Emergency Fund
As you get older, you will start to see some expenses rise. You may need dental care, or you may need to get a new prescription. This can be a bit tricky if you do not have one. These accounts can be used to save for the expenses if you do not have other coverage for them. This can be a great way to ensure that you have an emergency fund ready if something unexpected happens.
