When to Spend Your HSA Point Pleasant, NJ
The cost of healthcare can be intimidating. Luckily, there are ways to save on insurance and out-of-pocket costs. A healthcare savings account is one strategy to help offset the cost of medical and dental expenses.
Patients with healthcare savings accounts can use them for dental services at Eisenberger Dental in Point Pleasant and the surrounding area. Our team works with clients to determine the optimal financial strategy for treatment. Call us at (848) 377-3477 to learn more or to schedule an appointment.
An HSA Is an Investment Tool for Retirementt
An HSA is a great investment tool for retirement because of its tax treatment. It is one of the most tax-efficient investment options for people to save for retirement. Having an HSA offers greater investment growth potential and after-tax balance accumulation than other retirement options.
A crucial part of a retirement plan includes making regular contributions to an HSA to cover medical expenses in the future. People should consider the number of years between now and retirement. Some people may watch to take advantage of catch-up contributions as they approach retirement. While people can use their HSA for quali?ed medical expenses like dental care, retirees can also use their savings to pay for any non-qualified medical expenses once they reach age 65.
“Having an HSA offers greater investment growth potential and after-tax balance accumulation than other retirement options.”
HSA Tax Benefits
HSA's offer a triple-tax advantage through pre-tax contributions, tax-deferred growth, and tax-free withdrawals for qualified medical expenses. People that use their HSA to pay for qualified dental expenses do not have to pay federal taxes. Contributions made to the account can occur through the owner's funds or payroll deductions from work. Payroll deductions are tax-deductible, while savings from personal funds are not subject to FICA taxes.
People who choose to use an HSA can benefit from growing their account balance free of taxes. The interest, dividends, and capital gains that people earn from their accounts are tax-free. This tax-free advantage differs from other retirement accounts, such as a 401(k), which requires people to pay income taxes when withdrawing funds. The more a person adds to their HSA fund, the more tax-free earnings they can receive.
” HSA’s offer a triple-tax advantage through pre-tax contributions, tax-deferred growth, and tax-free withdrawals for qualified medical expenses. “
Investing and Spending Strategies
The key to taking advantage of the HSA rules is to spend and invest wisely. Since there are many benefits to keeping an HSA for retirement expenses, it is important for people not to spend all their contributions. Instead, opt to spend a little on routine out-of-pocket medical or dental expenses and keep the balance growing with contributions.
Many dental expenses qualify for HSA spending. For items that are not covered by insurance, the HSA can help bridge the gap. To grow an HSA balance, it is a good idea to invest a portion of it in mutual funds, bonds, or stocks.
“To grow an HSA balance, it is a good idea to invest a portion of it in mutual funds, bonds, or stocks.”
Check out what others are saying about our dental services on Yelp: When to Spend Your HSA in Point Pleasant, NJ
Transferring an HSA When Changing Jobs
Another benefit of having an HSA is the ownership of it. The person who opened the HSA account is the owner, not their employer. People that move jobs and change health plans do not have to worry about losing their HSA.
Once people move to a new job and receive a new plan, they can roll their previous account into their new one. HSA balances also roll over, so there is no risk of losing any money left over in the account at the end of the year. HSA users will have access to their money for qualified expenses.
“People that move jobs and change health plans do not have to worry about losing their HSA.”
Questions Answered on This Page
Q. How should people spend and invest their HSA contributions?
Q. How is HSA an investment tool for retirement?
Q. What are the HSA tax benefits?
Q. What are the steps in transferring an HSA when changing jobs?
Q. When is the right time to open an HSA?
People Also Ask
Q. What are the pros and cons of an HSA?
Q. What factors should people consider when choosing a dental insurance plan?
Q. Beyond regular checkups, what additional procedures might a dentist recommend?
The Right Time To Open an HSA
As long as a person is qualified, it is possible to open an HSA at any age. However, it may be beneficial to open an HSA at a younger age because of the power of time. Investing early on gives people the ability to have their contributions compound tax-free for longer. People should start saving with an HSA when they are young and healthy with lower health care costs.
Early on in their careers, people do not have to save a large amount to their HSA since there is no minimum contribution. However, saving money in an HSA while young can help people get the most out of their long-term retirement savings. We recommend developing an investment and savings strategy as early as possible.
“Investing early on gives people the ability to have their contributions compound tax-free for longer.”
Frequently Asked Questions
Q. What are some examples of qualified medical expenses for a healthcare savings account?
A. HSA withdrawals are only tax-free when spent on qualifying medical expenses. These include out-of-pocket expenses for doctor visits, medical procedures, co-pays, dental costs, vision care, medications, and feminine hygiene products. The expenses can be for the individual, a spouse, or a dependent.
Q. How much can I contribute each year to my HSA?
A. Each year, the IRS sets a limit on the amount of money someone can contribute to an HSA. For 2021, the limit for an individual is $3,600, and for a family, it is $7,200. Individuals over the age of 55 can contribute an additional $1,000 each year as a catch-up contribution.
Q. What is a high-deductible health insurance plan?
A. To qualify for an HSA, an individual must be participating in a high-deductible health plan. With these, the individual is responsible for paying a certain amount before the health insurance company steps in and starts covering expenses. The deductible needs to be at least $1,400 for an individual plan or $2,800 for a family plan.
Q. What are the penalties for withdrawing funds for ineligible purchases for an HSA?
A. There is a penalty when using an HSA to pay for things that are not qualifying medical expenses. First, you have to pay taxes on that money as it now counts as income. Next, if you are younger than 65, you are charged another 20% penalty on the funds. To avoid this, do not withdraw HSA funds for non-medical expenses.
Q. Who else can contribute to my HSA?
A. Some employers also make contributions to their staff's HSA plans. If your job contributes to your HSA, be sure that you do not go over the IRS contribution limit. Excess contributions will result in a 6% tax penalty.
Scan here to view this page, When to Spend Your HSA, on mobile
Dental Terminology
Call Us Today
There are many advantages to HSA, from managing the costs of some dental treatments to investing for retirement. Our team can help you understand how these savings accounts work and what expenses qualify. Call us at 848-377-3477 for more information or to schedule an appointment.
Helpful Related Links
- American Dental Association (ADA). Glossary of Dental Clinical Terms. 2025
- American Academy of Cosmetic Dentistry® (AACD). Home Page. 2025
- WebMD. WebMD’s Oral Care Guide. 2025
About our business and website security
- Eisenberger Dental was established in 1985.
- We accept the following payment methods: American Express, Cash, Check, Discover, MasterCard, and Visa
- We serve patients from the following counties: Ocean County and Monmouth County
- We serve patients from the following cities: Point Pleasant, Bay Head, Mantoloking, Brick, Lakewood, Brielle, Manasquan, Sea Girt, Spring Lake, Belmar and Toms River
- Norton Safe Web. View Details
- Trend Micro Site Safety Center. View Details
Scan here to open directions to Eisenberger Dental on mobile
Back to top of When to Spend Your HSA
Related Posts
What To Expect Before, During, And After Treatment From A Cosmetic Dentist
A cosmetic dentist helps patients get closer to the smiles of their dreams. Whether the cosmetic issue is a single tooth or the smile as a whole, they have a wide range of services available to address it. Knowing what to expect at every step of the way can streamline treatment.Preparing for cosmetic dental treatment…
7 Ways A Cosmetic Dentist Can Transform Your Smile
A cosmetic dentist offers advanced solutions designed to enhance both the appearance and function of the smile. From subtle improvements to dramatic transformations, the expertise of a cosmetic dentist can help restore confidence and improve oral health. These procedures are tailored to suit each individual’s needs while maintaining a natural and balanced look.Stains from food,…
What To Expect During A Smile Makeover Consultation From A Cosmetic Dentist
A consultation with a cosmetic dentist is the essential first step in achieving a radiant, confident smile. If you are looking to restore your smile, these personalized treatment plans can address multiple concerns, including discoloration, chips, misalignments, and missing teeth. The following blog outlines what you can expect during this initial appointment and helps you…
Explore additional topics covered on our website:
Call Us Today
Scan here to call Eisenberger Dental on mobile