Health Savings Account for Residents in San Angelo, TX and all of West Texas

Health Savings Accounts, also known as HSAs, allow individuals to pay for qualified medical expenses using pre-tax funds from out of pocket. If you are interested in taking advantage of an HSA, you must be enrolled in a High Deductible Health Plan (HDHP). An HDHP is a health plan in which individuals are covered for large expenses and that pays for their daily expenses, typically up to the amount of the deductible.

Annual contributions to your account reduces your taxable income, and funds used for qualified expenses are never taxed. Any unused contributions automatically roll over to be used during the next year. Distribution of funds can be used tax-free to pay COBRA and other medical insurance premiums while unemployed or collecting unemployment. They can also be used for qualified dependents who don’t have insurance.

Why is a Health Savings Account a Good Idea?

Getting a Health Savings Account (HSA) is a smart practical and financial move for several reasons. Because you can set aside pre-tax dollars to cover qualified medical expenses, you can significantly reduce your healthcare costs. Contributions to an HSA are tax-deductible, and withdrawals for eligible medical expenses are tax-free. This can allow you to save for unexpected medical bills while improving your tax situation.

You can also take advantage of an HSA for long-term potential. Because HSA funds roll over without expiring, you can build a potentially substantial healthcare nest egg. This provides peace of mind that your medical expenses will be covered without having to worry about unexpected bills. You can keep your HSA if you switch to another job or if you retire, providing further peace of mind. Overall, a Health Savings Account provides a flexible and tax-efficient way to manage your healthcare expenses while also saving for the future.

Contact Us

To learn more about the many benefits of health savings accounts, call Zesch & Pickett Insurance, L.L.P. today. We’re eager to help set you up with an HSA you can count on.