Advertisement
savings

Best Health Savings Accounts for Your Money

If you use money outside of the HSA to pay medical bills now, you can build up cash tax-free for future medical expenses.

As long as you have an eligible high-deductible health insurance plan, you can open a health savings account with many banks and brokerage firms.

Caveat: If your employer limits payroll deduction of your HSA contributions to its recommended HSA provider, use that account so that your contributions avoid the 7.65% Social Security and Medicare (FICA) taxes and to ensure you get any company match. Once you’ve taken advantage of those benefits, though, you can transfer your funds to another HSA.

Advertisement - Article continues below

Consider these deals for different types of HSA savers:

For long-term goals

If you use money outside of the HSA to pay medical bills now, you can build up cash tax-free in your HSA for future medical expenses, such as health care in retirement.

HSA Bank offers a large menu of mutual funds and other investments through TD Ameritrade. The monthly account-maintenance fee of $2.50 is waived if you maintain a balance of $5,000 or more.

For near-term expenses

Credit unions offer the most-competitive rates. For example, Lake Michigan Credit Union, which is open to anyone who donates $5 or more to the West Michigan chapter of the ALS Association, is paying 1.5% — or 2% on savings of $5,000 and up.

For a complete list of rates on HSAs, go to www.hsarates.com.

Advertisement
Advertisement

Most Popular

What Trump's Payroll Tax Cut Will Mean for You
Tax Breaks

What Trump's Payroll Tax Cut Will Mean for You

President Trump issued an executive order to suspend the collection of Social Security payroll taxes. How much could it save you?
August 13, 2020
8 Things You Must Know About Retiring to the Carolinas
retirement

8 Things You Must Know About Retiring to the Carolinas

From the mountains to the beaches, North Carolina and South Carolina offer retirees plenty of incentives.
August 14, 2020
7 Surprisingly Valuable Assets for a Happy Retirement
happy retirement

7 Surprisingly Valuable Assets for a Happy Retirement

If you want a long and fulfilling retirement, you need more than money. Here are the most valuable retirement assets to have (besides money), and how …
August 3, 2020

Recommended

Emergency Funds: How to Get Started
Making Your Money Last

Emergency Funds: How to Get Started

There’s no one-size-fits-all formula for how much you’ll need.
July 30, 2020
12 Tax Deadlines for July 15 (It's Not Just the Due Date for Your Tax Return)
tax deadline

12 Tax Deadlines for July 15 (It's Not Just the Due Date for Your Tax Return)

Between due dates for paying estimated taxes, IRA or HSA contributions, and other deadlines, there's more to do by July 15 than just filing your feder…
July 14, 2020
How to Navigate Emergency Funds in Urgent Times
savings

How to Navigate Emergency Funds in Urgent Times

COVID-19 has revealed cracks in many people’s financial plans, and emergency funds have never been more important.
July 12, 2020
HSAs Get Even Better
Financial Planning

HSAs Get Even Better

A health savings account is a powerful, tax-advantaged tool to cover out-of-pocket medical expenses and a smart way to save for medical expenses in re…
July 3, 2020