Medical Expenses and Tax-Preferred Savings

Medical Expenses and tax preferred savingsBy now everybody knows about tax-preferred Individual Retirement Accounts (IRA), but do you know about a similar account to help pay for certain medical expenses? It’s called a Health Savings Account (HSA). Your community bank wants to help, and can provide more information. Here are the basics:

  • If you are enrolled in only one health insurance plan and it has a high deductible, you probably are eligible to open an HSA.
  • Help you avoid the shock to your finances that a sudden large medical bill can cause. Money can accumulate in the account from year to year. And, expenses related to eligible medical expenses are tax-deductible.

Like any financial instrument, you do well to inform yourself about the pros and cons of an HSA account. They may not be for you, nor may they be to your advantage. Get more information about the advantages and common pitfalls of Health Savings Accounts from the Treasury Department. Many community banks, including Peoples Bank, offer HSAs. Get information about Peoples Bank consumer accounts.

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