The holidays are hectic. And no matter how much you plan and try to get ahead, everything still seems to always hit at once. From gifts to buy and food to prepare, to tying up loose ends at work and on the home front, there’s never a shortage of things to keep you busy this time of year.
But when it comes to your health savings account, there’s no need to stress. Because unlike flexible spending accounts (FSAs) and other accounts, your HSA rolls over year to year indefinitely with no penalties or issues. You never face a “use it or lose it” scenario with your HSA.
So rest easy knowing that you don’t have to add spending your HSA dollars to your holiday to-do list.
The Importance of Understanding HSAs are NOT FSAs
While more and more people choose high-deductible health plan (HDHP) coverage and open an HSA, there are still many who don’t understand the critical differences between HSAs and FSAs. Long story short—HSAs and FSAs are not the same thing.
More than half of Americans are still hopelessly confused by health insurance. And 65% of them don’t know that HSAs and FSAs are two different things.
This misunderstanding alone can be a real problem that limits individuals usage of and benefits from an HSA.
Oftentimes, individuals may hesitate to choose HDHP/HSA coverage to begin with due to not understanding how HDHPs and HSAs actually work. And even those who do have HDHP coverage with an HSA who don’t fully understand how HSAs work most often shy away from utilizing their HSA to its fullest—if at all.
In either scenario, one simple HSA misconception can lead to missed opportunities to save money on taxes and in premium dollars, take better control of healthcare costs and achieve better long-term financial wellness through unique HSA investment opportunities—among a host of other benefits.
No Deadline to Spend Your HSA Funds Means You Can Easily Become an HSA Saver
With infinite HSA rollover capabilities and with no limitation on when you can reimburse yourself for an HSA-eligible expense, considering adopting an HSA saver strategy can be an extremely savvy move to plan for future healthcare and other expenses, as HSA dollars can be used tax free for any expense—healthcare or otherwise—after you turn 65.
The HSA saver strategy is simple and straightforward—you choose to maximize your contributions and then save and invest your HSA funds for the best long-term financial wellness, all while still taking advantage of all the short-term benefits of having an HSA.
Consider these three simple steps to begin your path to becoming an expert HSA saver:
- 1. Maximize your triple tax savings by maxing out your annual HSA contribution
- Contributing the maximum annual limit to your HSA each year ensures you get the most significant tax savings upfront while simultaneously adding the most money to your HSA to save and invest for the long term
- 2. Save and invest your HSA funds and pay for your eligible expenses out of pocket
- This might seem counterintuitive, but to truly flex your HSA muscle and investment potential, leaving your HSA funds untouched to save and invest is the best way for those funds to grow tax free and uninterrupted, netting you the most long-term savings. And don’t forget, with no time limit on when you can reimburse yourself for an HSA-eligible expense, you’re not missing out on any short-term savings—you’re simply delaying your tax-free reimbursement until you capitalize on your account’s long-term compound growth.
- 3. Become an HSA Expert with the Right HSA Partner
- You’ll want to keep good records so you’re ready when it’s time to reimburse yourself for past HSA-eligible expenses. This might seem like a pain when you’re considering years of unreimbursed expenses, but when you choose the right HSA partner, tracking and monitoring your expenses is quick, easy and hassle-free.
Become an HSA Expert with the Right HSA Partner
From understanding HSA basics to learning how and why to leverage every aspect of a health savings account, HSA education is everything.
You deserve an HSA provider that’s a true partner—one that makes HSAs easy for everyone, regardless of how much you know or don’t know about HSAs. One that provides proactive educational tools and resources, personalized guidance in real time, a simple-to-use platform with responsive support and best-in-class HSA investment options that truly help you become an HSA expert and maximize your HSA.
There are many options when it comes to HSA providers, but few that check all the boxes and deliver HSA success.
Bend is Here to Boost Your HSA Success Now and Into the Future
Whether you have room on your holiday to-do list to choose the best HSA partner or you put it on your radar for the new year, anytime is the right time to open a Bend HSA and experience how easy it can be to achieve HSA success with the right HSA partner.
And remember, even if you have an existing HSA, you can still open a Bend HSA. It’s quick, simple and a savvy way to ensure you get access to a user-focused platform thoughtfully designed to make your life easy and help you maximize every element of your HSA.
With a Bend HSA, you get the industry’s best tools, resources, guidance and investment options, all in one easy-to-use package.
Open your Bend HSA today
Get started working toward an even brighter financial future.
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