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Planning for Medical Emergencies: Using an HSA to Your Benefit

Thinking about the worst case is never fun, but it’s always better to be prepared than to have an emergency take you by surprise. Where your health is concerned, a Health Savings Account or HSA for short, is a solid place to start as far as advance planning goes. Here are a few of the benefits to putting your health and finances first with an HSA.



What is an HSA?

An HSA is a savings account specifically for medical expenses. This account is typically available if you have a high-deductible insurance plan (that’s with a deductible of at least $1,350 for an individual or $2,700 for a family) and can be used for a wide range of medical expenses—from copays to prescriptions and more.

How to use an HSA?

Having a high-deductible insurance plan can save you a lot on a month-to-month basis, but you might be hit hard if you need medical care. How much you save each month is up to you, but anything is better than nothing. It doesn’t hurt to max out the tax benefit, or even just round up your monthly insurance payment to the nearest $50 or $100 to save the difference.

What are the Benefits of having an HSA?

Here are a few of the more attractive reasons for managing health care costs with an HSA:

Triple Tax Benefit

The money you put in an HSA (up to $3,450 for individual coverage and up to $6,900 for family coverage) reduces your taxable income. Any interest you earn on the account—whether a percentage earned or from an investment portfolio—is also not taxed. And unlike many retirement savings accounts, any money you withdraw for qualifying medical payments is tax free too. That’s a triple tax benefit right out of the gate.

Helping Hand for Retirement

By taking advantage of another way to save for retirement and reduce your taxable income, you’re giving your future self a leg up when it comes to healthcare costs. All the money you put away in an HSA will be available to you as you reach the end of your working years, an essential asset to a healthy retirement that can help supplement your other retirement accounts.

Help Your Health, Both Physically and Financially

How would your financial goals be impacted by a medical emergency? How about a doctor visit with unexpected lab work not covered by your insurance? Putting away money each month into an HSA can save you a ton in medical bills if something comes up, and it can make it easier to seek out the preventative care that will help keep you healthy in the long term. An HSA helps keep your financial and physical health on track, with the benefit of being able to take advantage of your saving right away, without waiting until you hit a milestone birthday.

Benefits of an HSA with RMCU

An HSA from Rocky Mountain Credit Union offers a few benefits you can get excited about. Unlike many HSAs, here you’ll find no annual or monthly fees, plus a competitive interest rate. Free online and mobile banking comes standard, making it easy to manage your money wherever you are.

Visit the RMCU Savings Accounts page to apply online and easily begin saving for your health, starting now.


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