LISTEN: Is it worth it to set up a health savings account? HealthQ has answers. When Mike McKee thinks about saving money for the future, he has a few priorities. Maxing out his retirement is one. Building up his kid’s college fund is another. Opening up a health savings account? Not so much, even though he qualifies because of his high-deductible health plan. “I’m so frustrated with the system that has anything to do with medical savings,” said McKee, 42, a self-employed musician in Nashville, Tennessee. “I’m just so turned off emotionally that I have to be really careful to be logical about it.” More Americans are eligible to open an HSA — a kind of tax-free savings account that lets them sock away money for medical expenses — after changes that were part of new legislation last year. But an HSA can be a headache to set up and navigate. Here’s what to know about how they work and when they’re worth it. Like a Tax-Free Investment Account for Medical Expenses With an HSA, you set aside money from your paycheck before taxes, and you can use that money to pay for medical expenses later. Most purchases related to health qualify, including medications, glasses, orthodontia, and many kinds of therapy. You have options for the money in the account, including investing it. Some people call HSAs a “triple tax advantage”: There are no taxes on the money that goes in, no taxes on any interest earned, and no taxes…
