Understanding the Benefits of a Fidelity Health Savings Account

Understanding the Benefits of a Fidelity Health Savings Account

Have you heard of a health savings account, or HSA? An HSA is a special type of savings account that allows you to save money tax-free for medical expenses. You can use the funds in your HSA to pay for things like deductibles, copayments, and prescriptions. In this blog post, we’re going to take a closer look at one of the most popular HSA providers, Fidelity, and explore the many benefits of a Fidelity health savings account.

Lower Your Taxes with Fidelity Health Savings Account

One of the primary benefits of a Fidelity HSA is that it provides significant tax savings. Contributions to your HSA are tax-deductible, which means you can reduce your taxable income by the amount you contribute. This tax savings can really add up over time, especially if you contribute the maximum amount allowed by law.

In addition, any funds you withdraw from your HSA for qualified medical expenses are tax-free. This means you can save on taxes both when you contribute to your HSA and when you use the funds. Over time, these tax savings can help you build a significant nest egg for your healthcare needs.

Invest Your HSA Funds with Fidelity

Another great feature of a Fidelity HSA is that you can invest your funds in a variety of different options, including stocks, mutual funds, and exchange-traded funds (ETFs). This can allow your savings to grow even faster and potentially provide even more tax savings down the road.

Of course, investing does come with some risk, so it’s important to be smart about how you invest your HSA funds. Consider your age, risk tolerance, and investment goals when choosing your investments. A Fidelity financial advisor can help you make smart investment decisions based on your individual needs.

Save Money on Healthcare Costs with a Fidelity HSA

One of the most obvious benefits of an HSA is that it allows you to save money on healthcare costs. Because you can use HSA funds to pay for deductibles and other out-of-pocket expenses, you can reduce your overall healthcare costs. Plus, if you have a high-deductible health plan (HDHP), you may be eligible for lower premiums.

And because your HSA funds belong to you, you can use your HSA to pay for medical expenses even if you switch jobs or retire. This provides a level of financial security and flexibility that many other healthcare options do not.

Conclusion

A Fidelity health savings account can be an excellent way to save money on healthcare expenses while also enjoying tax benefits and potential investment gains. By taking advantage of the many benefits of a Fidelity HSA, you can build a significant nest egg for your future healthcare needs. Contact Fidelity today to learn more about how a health savings account can benefit you.