Not for Beer. Not for your pet Vet. Not for the Pizza Guy. Not for new Brunos. Not for an iTouch.
Actually, what is the best way to use your HSA account? It’s a legitimate question, but the answer is going to vary based on your individual circumstances. That said, you need to know, that whatever you put into it is there for your health, and if you need care and don’t have other resources available to pay for it, then, use the money in your HSA. Don’t skimp on healthcare, just because you want to save every last penny for a healthcare rainy day.
Ok, now that is out of the way, my personal opinion is, the less you can dip into it the better and the reason why is because your money is growing TAX FREE when it is in your health savings account. So if you can avoid dipping into it, then let it grow Baby!
But while it’s growing, make sure you keep all your receipts for future reimbursement. Your doctor bills, your prescription bills, your bills for cough medicne, allergy medicine, dental care, eye glasses and anything else that might remotely count as a qualified medical expense. Put all those expenses in a safe place and then you can use them as tax back-up when you pay yourself back later.
Pretty simple, and I hope this helps and makes some sense.
Filed under: health insurance, health savings accounts, healthcare, high deductible health plan, hsa education | Tagged: best way to use HSA, eligible expenses, hsa education, taxes, what is an hsa
