Listen up University of Michigan employees! 📢

👉 Are you taking full advantage of the health savings account (HSA) option?

HSAs can be a powerful financial tool. Not just for covering medical expenses, but for long-term savings as well. 💡

🧩 What is an HSA?

An HSA is a tax-advantaged account available to employees enrolled in a high-deductible health plan (HDHP). It allows you to set aside pre-tax dollars to pay for qualified medical expenses.

💥 Triple tax benefits

HSAs are unique because they offer three significant tax advantages:

1️⃣ Contributions are tax-deductible

2️⃣ Earnings grow tax-free

3️⃣ Withdrawals for medical expenses are tax-free

This makes them an excellent savings tool for both current healthcare needs and retirement.

✅ Not just for short-term

Unlike flexible spending accounts (FSAs), HSA funds roll over from year to year. If you invest in your HSA, those funds can grow and turn it into a powerful retirement savings tool. 🛠️

In fact, many financial planners consider HSAs to be as valuable as retirement accounts like 401(k)s or IRAs—especially if you don’t need to use all the funds right away.

🎯 Who benefits?

If you have relatively low medical expenses, an HSA allows you to save money on premiums and invest the excess. Over time,⏰ this can add up to a significant amount that you can use for healthcare costs in retirement.

Want to catch the full breakdown of HSA benefits in our webinar? 🎥 Watch the replay for more in-depth tips on how to make the most of all your fantastic U of M benefits!