By McKay Moravick
A Health Savings Account (HSA) is a powerful tool that allows you to save money tax-free for qualified medical expenses, offering flexibility, control, and huge tax benefits. Whether you’re preparing for future healthcare costs or want to take advantage of tax savings now, an HSA is an essential part of a well-rounded financial plan.
2025 HSA Contribution Limits
- Self-Only Coverage: $4,300
- Family Coverage: $8,550
- Catch-Up Contribution (55 or older): Additional $1,000
Key Benefits of an HSA
- Triple Tax Advantage:
- Tax-Deductible Contributions: Your contributions to an HSA reduce your taxable income.
- Tax-Free Growth: Any growth within your HSA, such as interest or investment returns, is tax-free.
- Tax-Free Withdrawals: When you withdraw funds for qualified medical expenses, you don’t pay taxes on those withdrawals. (Find more information on IRS-qualified medical expenses from irs.gov.)
- No Expiration on Funds:
- Unlike Flexible Spending Accounts (FSAs), HSAs are not “use-it-or-lose-it.” Your funds roll over year after year, allowing you to build a substantial balance over time.
- Portability:
- Your HSA is yours to keep, even if you change jobs or retire. It offers flexibility and control over your healthcare savings, regardless of your employment status.
- Family Benefits:
- You can use your HSA funds for qualified medical expenses for your spouse and dependents, providing comprehensive financial support for your family’s healthcare needs.
- Investment Opportunities:
- Once your HSA reaches a certain balance, you can invest the funds, allowing your savings to grow even further, tax-free.
Why We Recommend Fidelity for Your HSA
When it comes to choosing where to open your HSA, Fidelity stands out as our top recommendation for several reasons:
- No Account Fees or Minimums:
- Fidelity doesn’t charge any account fees, and there’s no minimum balance required to open an HSA, making it accessible to everyone.
- Wide Range of Investment Options:
- Fidelity offers the widest range of investment options among the largest HSA providers, allowing you to tailor your investment strategy to your financial goals.
- Competitive Cash Rates:
- Fidelity’s HSA offers competitive cash rates, ensuring that your savings work harder for you, even before you start investing.
- Comprehensive Resources:
- Fidelity provides tools to estimate your future healthcare expenses and guidance on how much to save, ensuring you’re prepared for both short-term and long-term healthcare costs.
- Easy Contributions and Transfers:
- Whether you’re making a one-time contribution, setting up recurring deposits, or transferring funds from another HSA, Fidelity offers flexibility and ease in managing your account.
Is an HSA Right for You?
To contribute to an HSA, you need to be enrolled in a High-Deductible Health Plan (HDHP). If you’re not sure whether an HSA is the best option for you, Fidelity offers resources and guidance to help you make an informed decision.
Take Control of Your Healthcare Savings
Opening an HSA is a smart way to prepare for future medical expenses while enjoying significant tax advantages today. With no fees, a range of investment options, and the ability to manage your account with ease, Fidelity provides everything you need to make the most of your HSA.
For more information or to open an HSA, visit Fidelity’s website here or contact us at Boettcher Insurance Agency. We’re here to help you navigate your healthcare options and maximize your financial wellbeing.
