There are a number of financial products available in the market. However for those who are looking for a product which gives maximum tax benefits is Health Saving Accounts. This one product offers three benefits at a time. For an individual who aim to gain tax benefit along with saving funds for future medical expenses. The benefits provided by HRA’s are more than some of the famous traditional retirement plans.
Benefits of Health Saving Accounts:
- Investing money in HSAs helps individual to save money from total contribution to income tax.
- Interest earned on HAS funds is exempted from tax.
- Withdrawals done for qualified medical expenses are tax-free.
HSA’s is properly known as “triple tax benefit”. Its been almost 15 years that HRA’s have been in the market. Nowadays there are a number of financial institutions which offer Health Saving Accounts. Selecting, the right HS Account is not an easy task. In order to select the best account, it is important to check for some key features.
- Fee structure: different financial have a different fee structure for their Health Saving accounts. This includes investment fee, annual maintenance fees and other charges and maintenance fees. An investor should compare fees of various HSAs and then select the one with minimum fee structure.
- Multiple investment options: HSAs, besides giving tax benefits to the individual also give an option to a earn profit on their deposited funds. An investor can select an account which gives them more options to invest their money.
One firm which gives all the above-mentioned benefits in their HSAs is Livelyme. Opening a Health Saving Account is very easy. Individuals just have to go the site livelyme and have to register themselves. The HSA gets opened within 5 minutes. Moreover, opening an account is absolutely free and there are no hidden charges.