What is a health savings account (HSA), and why are so few people utilizing it? The HSA is one of the best tax shelters that exists to build wealth.   

In this episode of the Finance For Physicians Podcast, Daniel Wrenne talks about how the HSA works, how to decide if it is a good fit for you, and ways to manage an HSA to maximize its efficiency.   

Topics Discussed: 

Two Groups of People: 

Those who don’t use HSA at all

Those who do, but don’t maximize its efficiency

What is the HSA? Access to an account via a qualified health insurance plan

What is a qualified health insurance plan? Separate part of plan to use HSA 

Why is the HSA a great way to build wealth?

Rollover balance

Invest those dollars 

Offers tax benefits

Decision-making Factors: 

Low utilization of healthcare insurance

Higher expected upcoming healthcare costs

Out-of-pocket costs

Matching HSA funds 

Incorporate tax benefits

Open Enrollment: Run the numbers before you choose an option

Links:

HSA Comparison Template 

HSA Tax Benefits 

Why You Should Pass On Using Your HSA For Current Health Care Costs 

HSA vs. IRA vs. 401k  

Finance For Physicians