Families who want to save for healthcare expenses should consider opening a tax-advantaged Health Savings Account (HSA Providers). Our comprehensive guide reviews the 15 Best Health Savings Account Providers (Hsa Providers).
In a nutshell, a health savings account (Hsa Providers) allows you to contribute money on a pre-tax basis, and your money gets the chance to grow tax-free until you use it for qualified healthcare expenses.
If you’re eligible for a plan, you will face contribution limits each calendar year, although these limits tend to be generous.
In 2022, individuals can contribute up to $3,650 in an HSA for self-only coverage, and families can contribute up to $7,300.
How do HSAs Work?
To be able to fund an HSA, you must have what the government considers a high-deductible health plan (HDHP), which the IRS defines as a plan with a minimum deductible of $1,400 for individuals or $2,800 for families for 2022.
Meanwhile, your plan must also meet a maximum out-of-pocket limit for the year, which is $7,050 for individuals and $14,100 for family plans in 2022.
If you believe saving for healthcare is important and you have an eligible health insurance plan, you should know that you can open a health saving account with any provider you want.
15 Best Health Savings Account (HSA) Providers of 2022
Right now, these are the best HSA providers on the market.
Each excels at least one thing, whether it’s keeping fees to a minimum or providing an unusually broad range of investment options. The list goes:
1. HSA Authority (Old National Bank)
2. HealthEquity
3. Fidelity Investments
4. Lively HSA
5. Further HSA (Formerly Select Account)
6. Bank of America
7. Optum Bank
8. HSA Bank
See More List Here
HSA Authority (Old National Bank)
The HSA Authority is one of the best Hsa providers for families.
Users like HSA Authority because of their extensive online account management options and the ease with which financial tasks can be delegated to other members via their online banking portal.
Their online functionality allows two parents or partners to manage HSA funds, make contributions, and pay medical bills on behalf of the entire family.
HealthEquity
HealthEquity is our overall winner because it allows you to invest in Vanguard funds with low expense ratios and offers a variety of features such as a mobile app and no account management fees.
The company also provides accounts with no minimum investment threshold, allowing you to invest every dollar you put into your HSA right away.
The Benefits of HSAs
Why compile and keep track of a list of the best HSA accounts?
I’ve previously stated that the HSA is my choice for the best retirement account (with employer matching funds excluded), as well as the best account for health care costs.
Why are HSAs the best? Here are just a few of the reasons:
‣ HSAs offer a unique combination of tax-free pre-tax contributions and tax-free withdrawals for qualified medical expenses (QMEs), employer contributions, and growth through investments.
In other words, for qualified medical expenses, you’re not taxed when the funds are contributed or withdrawn from an HSA!
‣ HSA maximum contributions are significant — $3,650 per individual and $7,300 per family in 2022. That is a very significant amount of tax savings!
‣ HSA account contributions fully roll over from year to year (unlike with FSAs). In other words, HSA funds are not “use it or lose it”.
‣ You can do a one-time IRA to HSA rollover to boost your funds.
See More Benefits Here
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