HSA Is Better Compared to 401(k) Plan for Tax Saving & Income

Saving your personal income

If you live and work in United States, you may need to pay heavy amount for your medical bills and to the government in the form of tax on your personal income. It is not possible that you pay off your tax directly to Internal Revenue Service of the US Government by sending wrong calculations. The tax is deductible from your salary and the employer is bound to deduct the qualified amount. The employer will need to deduct for your health insurance if you don’t have the health insurance plan. So, you would need a solution to save money on medical bills and taxation in this country.

The solution with high benefits

Health savings account (HSA) is a right solution because this can offer dual benefits what you actually need. There are three tax advantages in having HSA. First, the money growth is tax-free. Second, the money that comes out from this account is also tax-free. Third, all contributions to this account are tax-deductible/pre-tax which means your taxable income will be reduced when you make contribution to HSA. For instance, your income in certain fiscal year is $70,000 and you contribute $4,500 to HSA, your taxable income would be $65,500 for that fiscal year. So, your tax burden is reduced and you are liable to pay tax on reduced income. You can get more information on livelyme.

Investment potential of HSA

HSA has investment potential also because the investment is allowed from this account in stocks, mutual funds, and other permissible investments and generate more funds from saved money on taxation. This is the added benefit of opening this account and rather better compared to participating in 401(k) plan. You can know about all benefits of this account by visiting https://livelyme.com and making your queries about this account. There is nothing to think when such facility is available and you are qualified for this account.