What will employees’ long term savings be?
Earnings through investments on money in HSA grow tax free. Additionally, once a person turns age 65, they can continue to use the account tax-free for out-of-pocket health expenses. It is a great resource to save money for healthcare expenses one may incur during retirement. It can be used to pay Medicare premiums, deductibles, copays, and coinsurance under any part of Medicare. It can also be used to pay for a person’s share of retiree health insurance premiums under a former employer. The HSA can also be used to pay for things other than medical expenses. If used for other expenses, the amount withdrawn will be taxable as income but will not be subject to any other penalties. Employers can determine specific savings through our CYC CDH Savings Calculator.
