Only 11% of Employees Fully Understand HSAs, Data Shows
Healthcare is a major burden for working Americans and seniors alike. Thankfully, there are tax-advantaged savings tools that can help workers set aside funds to cover both immediate and long-term medical expenses, like flexible spending accounts (FSAs) and health savings accounts (HSAs). But new data from Bank of America's 2019 Workplace Benefits Report reveals that today's employees are woefully underinformed with regard to the latter. In fact, only 11% could correctly identify the following four HSA attributes.
If you're in the habit of setting funds aside for your golden years, then you may be familiar with the concept of tax-advantaged savings. Retirement savings plans like IRAs and 401(k)s offer key tax benefits that make it easier to sock away money for the future. Traditional IRAs and 401(k)s, for example, offer tax-free contributions, but withdrawals in retirement are taxed. Roth IRAs and 401(k)s don't offer an immediate tax break for making contributions, but they do offer tax-free growth on investments and tax-free withdrawals during retirement.
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Source Fool.com
