Personal spending accounts (PSAs) are a great way to help you budget and save for major as well as everyday health care and/or dependent care costs. By offering tax benefits, PSAs typically keep more money in your pocket, and because you manage the funds in the accounts themselves, PSAs encourage you to be better health care consumers – stretching your health care dollars.
1. HEALTHCARE SAVINGS
PSAs allow you to use tax-free dollars to pay for eligible medical, prescription, dental, vision and dependent care expenses
2. TAX BENEFITS
Contributions to a PSA are made pre-tax. Withdrawals are always tax-free if used for eligible expenses.
3. GROW YOUR SAVINGS
Health savings accounts allow balances to accumulate and earn interest year over year, providing investment opportunities that can grow your account and be used towards your retirement.
4. BUDGETING HELP
PSAs help you budget and save dollars to cover major care needs, everyday care or dependent care costs.
Medicare and HSAs
Are you at or approaching age 65 and currently contributing to a health savings account? Be aware that enrolling in Medicare or receiving Social Security benefits ends your eligibility to contribute to an HSA. Contact your employer right away if this applies to you.