Introduction
Health Savings Accounts (HSAs) are one of the most tax-efficient tools for managing healthcare costs. What many people don’t realize is that HSAs can also be used to pay for qualified long-term care insurance premiums. This makes them a powerful strategy for future planning.
Triple Tax Advantage
HSAs come with three unique benefits:
- Contributions are tax-deductible.
- Growth is tax-free.
- Withdrawals for qualified expenses—including LTC premiums—are tax-free.
Annual Limits
The IRS sets age-based limits for how much of your LTC premiums can be paid from your HSA. These limits are adjusted yearly, providing increasing flexibility as you age.
Why This Matters
Using your HSA means you can fund your future care without dipping into after-tax dollars. It’s one of the smartest ways to combine healthcare savings with long-term protection.
Conclusion
If you already have an HSA, you hold a powerful key to funding your future care. Pairing it with LTC insurance ensures your health and finances are protected in the years to come.