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In this day in age, it would be a good idea to start socking away some money in case of a medical emergency if you already haven't. As for my generation, I highly doubt we will see a dime from social security, so it would be in our best interest to start saving for those medical bills that are sure to come.
A health savings account has several benefits. Here are five from American Health Value:
1. Tax Savings.
Federally Qualified* HSA contributions can be deducted from your gross income on your federal tax return, even if you do not itemize deductions.
Many states also allow the deduction from state income taxes.
2. Earned Interest.
Funds left to accumulate in your HSA can grow with tax-deferred interest earning.
3. Reduced Insurance Premiums.
Your insurance premiums are usually lowered by 20%-40% when you change from a low deductible to a high-deductible plan.
You can use these savings to fund your HSA.
4. Portability.
Even if you change jobs, your HSA funds go with you.
You own your account.
5. Long-Term Savings.
You can choose to let the funds in your account grow tax-deferred.
After age 65, you may make withdrawals from your HSA for any reason without a penalty. (You will pay income tax on non-medical withdrawals.)
http://www.americanhealthvalue.com/
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