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Health Savings Account (hsa)

Definition of Health Savings Account (hsa)

A health savings account is designed to accumulate tax-free assets to pay current and future healthcare expenses. To open an HSA, you must have a qualifying high deductible health plan (HDHP) either through your employer or as an individual. If you have an employerÔÇÖs plan, your contributions to the HSA are made with pretax income, and your employer may contribute as well. If you have an individual plan, you may deduct your contributions in calculating your adjusted gross income (AGI). Congress sets an annual limit on the amount you can contribute to an HSA, which you set up with a financial institution such as a bank, brokerage firm, insurance company, or mutual fund company that offers these accounts. No tax is due on money you withdraw from the HSA to pay qualified medical expenses such as doctorÔÇÖs visits, hospital care, eyeglasses, dental care, and medications for yourself, your spouse, and your dependants. Any money thatÔÇÖs left over in your HSA at the end of the year is rolled over and continues to accumulate tax-free earnings, which you can use for future healthcare costs. Once youÔÇÖre 65, you can use the money in the HSA for non-medical expenses without paying a penalty, but youÔÇÖll owe income taxes on those withdrawals. If you are younger than 65, you can also spend from your HSA on non-medical expenses, but youÔÇÖll owe income taxes plus a 10% tax penalty on the amount you take out.

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Financial Dictionary

What is Financial Dictionary?

Financial Dictionary is a dictionary or database that contains the meaning of all financial terms. Financial Dictionary has been created to help anyone, interested in understanding financial terms. It is extremely important to know what the financial terms mean when signing on terms and conditions. When availing financial products, you can be easily cheated if you don’t know what you have signed up for. To avoid this, you must be aware on what the terms really mean.

 

Who is this Financial Dictionary for?

We have developed this Financial Dictionary that could be used by anyone for free on our website. We have provided the meanings of almost all the financial terms along with the context in which they can be used. If you have lingering doubts on any financial term, then all you must do is log on to our website and check out the Financial Dictionary.

 

Why do you need to refer a Financial Dictionary?

If you wish to invest in the stock market, then it is extremely important to understand each and every term associated with it. A small misunderstanding can lead to huge losses in a matter of few seconds. It is only wise to know the meaning of all the terms before investing. The most comprehensive Financial dictionary covering all the financial terms. Brought to you by India's largest Free Financial Education company - IndianMoney.com.

 

What happens if I don’t refer a Financial Dictionary?

If you are planning to avail a Home Loan, then it is crucial for you to understand under what conditions your bank is sanctioning the loan. You must understand each and every term written on the loan agreement or else you will end up choosing a lender who charges high interest or with tough terms and conditions. To avoid this, just log on to our website and understand the meaning of financial terms with the Financial Dictionary.

 

Consequences of Misunderstanding a financial term

If you want to invest in a financial product, you must understand various financial terms. Not doing this could mean losses. Many financial intermediaries misguide you to make quick profits. You can avoid this by understanding financial terms and make smart investment decisions.

 

Uses of Financial Dictionary

If you are a Financial Advisor, then it is extremely important to stay updated on the latest financial terms. We at IndianMoney.com update all the new terms used in personal finance in the Financial Dictionary. You can refer and update yourself, to serve clients effectively. This is a double bonanza of increasing your efficiency and fetching clients more money.

 

How does our Financial Dictionary work?

Our Financial Dictionary has three main categories. First being ‘Most Searched Words’. These are the terms/words that are generally used in finance. You can just click on the words to know their meaning. Second category is ‘Recently Added Words’. These are the terms/words that are new to finance but have significance. Third being ‘You Recently Read’. If you have previously used our Financial Dictionary, then the words checked and their meaning would be displayed under this category.

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