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!
