Efficiently Manage Healthcare Expenses with an HSA

April 25, 2018

How are you preparing for financial security down the road? It is never too early or too late to begin saving for unexpected costs. One of the most important considerations for your future expenses is that of healthcare. That is what a Renasant Health Savings Account (HSA) is for. Here is everything you need to know about managing your healthcare expenses with an HSA.

Do I Need a Health Savings Account?

One of the scary things about healthcare costs is that you never know when an illness or injury may strike. This unpredictibility makes it hard to prepare for the costs a health issue may bring. The last thing you want to worry about during an illness or injury is how you are going to pay the doctor’s bill. Health savings accounts provide a simple solution to this common problem. You can gradually add savings to an account reserved just for healthcare expenses.

Unexpected healthcare costs can impact anyone. These accounts, however, are especially important to individuals with families who have the capacity to encounter more than one healthcare issue at a time. It is also essential to individuals with a medical history or who have illnesses that run in the family.

How Does an HSA Work?

The experts at Renasant Bank explain it best, “HSAs allow individuals with qualified high-deductible health care plans to save on taxes by setting aside interest-earning funds that can be used at the account owner’s discretion for qualified health care expenses.”

HSAs also let you save for healthcare expenses while generating additional income. This is because you earn tax-free interest on your account funds. An HSA works like an Individual Retirement Account (IRA), except it’s designed to help you cover costs associated with a high-deductible health plan.

Open Your HSA with Renasant Bank

Since a Renasant HSA is funded with “post-tax” dollars, your contributions may all be tax deductible*. Even better, your account balance can be invested to generate even more tax-free income—which means you come out ahead on both sides of the equation.

Make HSA deposits, monitor account activity, and view your monthly statements online or on your Renasant app. Withdrawals are easy, too, with your complimentary Renasant Bank HSA Debit Card. At the end of each year, your account balance simply rolls over, so you don’t need to worry about losing your hard-earned savings. Contact a Renasant Bank expert today to get started with your health savings account today!

*For more detailed information on HSA plans and taxes, talk with your tax advisor.