The Importance of Health Care Savings Accounts
The other thing about a healthcare savings account is, let’s say you save and you’ve got $20,000 there, and you need that money for something that came up that’s not medically, not medically qualified to make the withdrawal. You can still take the $20,000, it’s just going to be taxable income to you now.
So, you’re putting it aside pre tax, if you take it out and you don’t use it for medical related expenses, you can take it out, but then you have a tax liability on it.
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