She had front-loaded her HSA in anticipation of her daughters arrival.
But, as so many new parents discover, Wilson ended up making additional visits to her pediatrician post-delivery.
Youre saving money because youre not having to pay taxes on that money, Wilson said.
When Insurance Falls Short…
Unfortunately, insurance doesnt covereverything.These resourcescan help you manage those unexpected expenses.
If the answer is yes, you cannot use the HSA.
If the answer was no, you might.
Lets say youve been contributing $100 a month to your HSA for one year.
You have $1,200 in the account when you break your arm and go to the emergency room.
The good news is that most health care providers will agree topayment plans.
You may need to call your HSA provider and provide receipts to get approval.
Assuming you do get approval, youd essentially be reimbursing yourself from your HSA.
Youll have to report all HSA distributions on tax form1099-SAwhen you file your tax return.
But, so long as you used the money for medical expenses, those distributions are not taxable.
If youre looking to boost your income this month, weve got just the thing for you.
What happens to your HSA?
And what happens to the money you dont use?
That account is good forever and can be used to pay for future medical expenses.
Once you turn 65, you could use money in your HSA for non-medical expenses.
Fees vary by plan but are generally $5 per month or less.
This means that your HSA could help keep you physically and fiscally healthy for a long time.
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Tiffany Wendeln Connors is deputy editor at The Penny Hoarder.
