Hi everyone and welcome back to Money Girls Quick and Dirty Tips for a richer life.

I'm Laura Adams.

Didn't think there was a way to take money out of your IRA without having to pay a penalty?

In this podcast I'll tell you how to do that and give you more great reasons to love a health savings account.

You may have heard of a health savings account or HSA, but if you're like many people, you may not

know much about them.

I wrote Podcast Number 84 on Health Savings Accounts about a year and a half ago,

but I'm such a big fan of the HSA that I thought it was time to revisit the topic.

Health Savings Accounts were created in 2003 to help you save for future

medical expenses on a tax-free basis. That means you don't have to pay taxes on the money

you contribute to an HSA. You get to deduct the amounts from your taxable

income when you file your income tax return. And less taxable income is always a good thing, because

it results in a lower tax liability.

You contribute money to an HSA,

and then you spend the money on medical expenses

that aren't covered by your health insurance,

such as your health insurance deductible,

dental bills, vision expenses, and over-the-counter medicines.

You own the account as an individual, control it completely, and don't have to itemize deductions

on your tax return to take advantage of it.

Also, there are no minimum or maximum income limits you have to meet to be eligible to

contribute to an HSA.

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