by admin | Nov 1, 2024 | Blog
Health Savings Accounts (HSAs) are not just for covering medical expenses—they can also be a powerful tool for long-term investment. Recently named as one of the Top HSA providers in 2024 by Morningstar, NueSynergy offers unique investment opportunities that can help you grow your savings while enjoying significant tax benefits. In this blog, we’ll explore how NueSynergy’s HSAs can be leveraged for investment purposes, providing a dual benefit of healthcare savings and wealth accumulation.
Tax Advantages of HSAs
One of the most compelling features of HSAs is their triple tax advantage:
- Tax-deductible contributions: Contributions to an HSA are made with pre-tax dollars, reducing your taxable income.
- Tax-free growth: Earnings from interest, dividends, and capital gains within the HSA are not taxed.
- Tax-free withdrawals: Withdrawals for qualified medical expenses are tax-free.
These benefits make HSAs more advantageous than traditional retirement accounts like 401(k)s and IRAs.
Investing with NueSynergy’s HSAs
NueSynergy stands out for its investment-friendly features. Here are some key points to consider:
1. High-Quality Investment Options
NueSynergy offers an all-ETF lineup, which is the cheapest among its peers, with an average expense ratio of just 0.05%. This low-cost structure allows you to maximize your investment returns. Additionally, as stated in Morningstar, NueSynergy’s investment offerings include no Neutral- or Negative-rated funds, and 64% of its menu was Gold-rated as of August 2024. This high-quality selection ensures that your investments are in reliable and well-performing funds.
2. No Minimum Balance Requirements
NueSynergy does not require a minimum balance to start investing, making it accessible for all account holders. This flexibility allows you to begin investing as soon as you open your HSA, without having to wait until you accumulate a certain balance.
Strategies for Maximizing Investments with NueSynergy
To make the most of your HSA as an investment tool with NueSynergy, consider the following strategies:
1. Maximize Contributions
For 2025, the maximum HSA contribution is $4,300 for individuals and $8,550 for families. If you’re 55 or older, you can contribute an additional $1,000. Maximize your contributions each year to take full advantage of the tax benefits and growth potential.
2. Invest Aggressively Early On
If you’re young and healthy, consider investing aggressively in your HSA. With a longer time horizon, you can afford to take on more risk, which can lead to higher returns.
3. Use Other Funds for Medical Expenses
To allow your HSA investments to grow, try to cover current medical expenses out-of-pocket if possible. This way, your HSA can continue to grow tax-free, providing a larger nest egg for future healthcare costs or retirement.
NueSynergy’s Health Savings Accounts offer a unique opportunity to combine healthcare savings with robust investment potential. By understanding the tax advantages and investment opportunities NueSynergy provides, you can maximize your financial health and secure a more prosperous future.
by admin | Dec 14, 2022 | Blog
In the spring, NueSynergy touched on how to utilize the FSA Store to take advantage of FSA-eligible items. With the 2022 calendar year ending, now is a good time to detail the utilization of the HSA Store.
The HSA Store is akin to the FSA Store, as it’s an outlet for consumers to buy eligible products to fit their Health Savings Account needs. This online store carries over 2,500 products — from first-aid kits, orthodontia to pregnancy tests.
To best utilize the HSA Store, search any HSA eligible item you need for purchase. From there, add a promo code to any purchased HSA eligible item. All promo codes can be turned into points for future purchases.
The smallest denomination of points that can be redeemed for later use is 350 ($10) and largest is 1,500 ($50). You cannot redeem fewer than 350 points at a time. Balances under 350 points cannot be exchanged for a partial value dollar reward. Points expire six months (180 days) following your last order date. To learn about all HSA Store eligible items, look here.
by admin | Nov 30, 2022 | Blog
A Health Savings Account (HSA) is an individually owned, tax-favored account that allows participants to pay for qualified healthcare expenses, such as pregnancy test kits, eyeglasses, and more. Here is an overview of the five potential benefits that an HSA provides.
Benefit #1: HSAs provide triple-tax coverage; meaning contributions are made tax-free, grow tax-free, and can be withdrawn tax-free. This is possible if it’s coupled with a High Deductible Health Plan (HDHP).
Benefit #2: Unused HSA funds are rolled over annually, enabling them to be used for future expenses.
Benefit #3: Contribution limits continue to increase with this account. Participants can now use up to $3,850 in annual funds to pay for healthcare expenses individually. If participants wish to use up funds for family coverage, the annual limit is now $7,750.
Benefit #4: Participants who are Medicare eligible, but not enrolled in Medicare, can contribute to an HSA to save for retirement. If 65 or older, HSA funds can also be used without a penalty.
Benefit #5: Even if a participant loses employment, HSA funds can still be used to pay for qualified expenses. However, the ability to continue contributing depends on if the participant chooses to enroll in an HSA qualified health insurance plan either through COBRA, their new employer or an individual policy.
by admin | Sep 14, 2022 | Blog
Health Savings Account (HSA) participants can use their HSA funds to pay for qualified health care expenses such as deductibles and prescription drugs. What many don’t know is that HSA funds can also cover these commonly used products and services:
- Dental treatment
- Pregnancy test kits
- Orthodontia
- Hearing aids and batteries
- Ambulance services
- Contraceptives
- Insulin
- Prescription eyeglasses
- Nursing services
- Physical therapy
To learn even more about HSA-eligible items, check out our extensive list.
by admin | Jun 13, 2022 | Blog
1. Can I combine my HSA with an FSA?
No. An employer doesn’t own an employees’ HSA, nor are they responsible for how the funds are managed by the employee. The employee fully owns the contributions to the account as soon as they are deposited.
2. Are employers responsible for an employee’s HSA?
No. An employer doesn’t own an employees’ HSA, nor are they responsible for how the funds are managed by the employee. The employee fully owns the contributions to the account as soon as they are deposited.
3. Can an employer fund an employee’s HSA?
Yes. An employer may fully fund the employee’s HSA at the beginning of the year; however, HSAs belong to the individual and not the employer and the employer has no further control over the accounts after they have been funded. As a result, many employers elect to fund employees HSAs periodically throughout the year. If the employer is contributing, the employer and employee contributions combined may not exceed the annual IRS maximum.
4. Who is eligible to enroll in an HSA?
To be eligible, you must be covered under a Qualified High-Deductible Health Plan (QHDHP), cannot be enrolled in Medicare, and cannot be claimed as a dependent on someone else’s tax return.
5. How much can I contribute to an HSA and HDHP?
This is all based on the annual contribution limits established by the U.S. Treasury Department. These limits adjust annually, however the values for 2022 are as followed:
- HSA
- $3,650 for individuals
- $7,300 for family
- For account holders over 55 years of age, they may contribute an additional $1,000 as “catch-up”
- HDHP
- $1,400 for individuals
- $2,800 for family
- HDHP Maximum Out-of-Pocket
- $7,050 for individuals
- $14,100 for family
