Benefits Of Having An HSA:
- Whether you contribute to an HSA account from your paycheck before taxes or from your take-home pay, you won’t pay income tax. This can also reduce your taxable income.
- Any dividends (interest) your HSA earns is not taxed. With Royal’s great rates, this can add up to substantial savings.
- When you use HSA account dollars for a qualified medical expense, your withdrawal is tax free.
- HSA funds roll over from year to year. If you don’t use the funds, they’ll remain in the account, unlike a Flexible Spending Account with a “use it or lose it” rule.
- HSA money is portable. Even if you leave your job or move, you can take your HSA with you.
- HSAs may provide a tax-advantaged way to save for medical expenses in retirement.
