A health savings account, also known as HSAs are taxed advantaged savings accounts for health expenses.
The three tax benefits of HSAs are:
You can contribute pre-tax dollars through an employer and if you open an account yourself, contributions are tax-deductible.
You don’t pay taxes on growth in your account that happens through investing.
And, you don’t pay taxes on withdrawals for eligible expenses.
What’s the catch? You can only use the money in HSAs penalty free for qualified health expenses for you, your spouse, or eligible dependents.
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Rianka R. Dorsainvil, CFP®️ is the Co-Founder and Co-CEO of 2050 Wealth Partners a virtual, fee-only comprehensive financial planning firm dedicated to serving first-generation wealth-builders, entrepreneurs, and thriving professionals. Rianka also hosts 2050 TrailBlazers, a podcast aimed to address the lack of diversity in the financial planning profession by engaging industry experts and leaders in conversation.
As an award winning successful, millennial Certified Financial Planner professional, Rianka offers a unique perspective not only on the current state of the financial service industry, but on how to stay relevant in an ever-changing world.
Rianka serves as a member of CNBC’s Digital Financial Advisor Council and CFP Board’s Diversity Advisory Group, is a Forbes Personal Finance Contributor, and has been recognized for her accomplishments and leadership within the industry by leading publications and organizations such as Investment News’ inaugural 2017 Women to Watch Rising Star and Wealth Management’s Ten to Watch in 2018. She has been published in PBS NewsHour, Forbes, USA Today, Black Enterprise, CNBC, Women’s Health, and more.