SALT LAKE CITY--(BUSINESS WIRE)--With the upcoming tax code changes, a record number of Americans are realizing the power of utilizing Health Savings Accounts (HSAs) to help cut today’s medical expenses, save for tomorrow and reduce tax liability today. HealthEquity®, the nation’s oldest and largest health savings trust organization, is pleased that its members have now topped $1 billion in HSA balances.
“This milestone shows more Americans understand that allocating a part of their savings to a tax-free HSA is a no-brainer,” said Jon Kessler, Executive Chairman of HealthEquity.
An HSA is an individually owned savings and investment account coupled with an HSA-powered health plan. Unlike older flexible spending accounts, there is no ‘use-it or lose-it’ rule and qualified medical expenses can be withdrawn tax-free year after year. In addition to their own tax-free contributions, many HealthEquity members also receive tax-free contributions from their employers. Additionally, HSA deposits earn tax-free interest and can be withdrawn without penalty to pay for medical expenses.
“HSAs give an immediate tax deduction for every dollar contributed. Savings and investments grow tax-free and provide tax-free payments for medical expenses now or in the future,” said Dr. Stephen M. Neeleman, a practicing surgeon and founder of HealthEquity. “With upcoming tax rate increases and changes to health insurance, an HSA is a simple yet powerful way to fight rising costs.”
Founded in 2002, HealthEquity is the nation’s oldest and largest dedicated health savings custodian. Through efficient administration and innovative technology the company helps members build health care savings while controlling premium costs. HealthEquity works with more than 60 health plan partners and services more than 760,000 health care accounts for employees at more than 23,000 companies across the United States. To learn more, visit www.HealthEquity.com or call 1-855-437-4727.