(WWBT) - More and more employers are offering an under-appreciated benefit - heath savings accounts.
Think of health savings accounts as investing an IRA for health care.
What's great about them is they offer tax benefits and you can put money away now for future medical needs, even if you don't know what those needs will be.
The money is always yours, and there is a trifecta of tax benefits.
First, the contributions are tax-deductible and can be added as a pre-tax contribution through a payroll deduction. Secondly, the earned interest is tax-free. And third, withdrawals for qualified medical expenses are not taxed.
Michael Joyce, president of JoycePayne Partners, said once you have an HSA, let it grow.
"Really, the best use for it is just to let it accumulate over time," Joyce said. "Let it grow on a tax-free basis and you don't lose it. If you change employers or you retire, you get to keep the HSA."
The account will still be there after you retire in your 70s or 80s when you're more likely to have medical expenses.
If you're lucky? Some employers are even making contributions to HSA's on employees' behalf.
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