What is a Health Savings Account?
The Health Savings Account (HSA) is a tax advantage savings plan available to taxpayers in the United States who are enrolled in a High Deductible Health Plan (HDHP) and are used to cover current and future medical expenses. An HSA allows contributions to be added before tax is paid on it and then to withdraw the money tax-free1 for qualified medical expenses. HSAs help to manage medical expenses and reduce the continuing growth of healthcare costs.
Benefits of a Health Savings Account paired with a high deductible health plan include:
- Lower premiums
- Extended coverage
- Save and invest
- Control over your money
- Accounts are completely portable
- Flexible contribution options.
- Keep your money.
- Triple tax savings!
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1 HSAs are never taxed at a federal income tax level when used appropriately for qualified medical expenses. Also, most states recognize HSA funds as tax deductible with very few exceptions. Please consult a tax advisor regarding your state’s specific rules.
