What is an HSA (Health Savings Account)?

An HSA, or Health Savings Account, is a tax-advantaged savings account that allows individuals to save money for medical expenses on a pre-tax basis. It is a type of account that is used in conjunction with a high-deductible health insurance plan. Here's a breakdown of what an HSA is:

• Tax Benefits: Contributions to an HSA are tax-deductible, and the funds in the account grow tax-free. Withdrawals for qualified medical expenses are also tax-free.
• Ownership: Unlike an FSA (Flexible Spending Account), the money in an HSA belongs to the account holder and can be rolled over year after year.
• Portability: HSAs are portable, meaning they are not tied to any specific employer. If you change jobs or health insurance plans, you can still keep your HSA.
• Investment Options: Some HSAs offer investment options for account holders to grow their savings further.
• Usage: The funds in an HSA can be used for a variety of medical expenses, including deductibles, copayments, prescriptions, and other qualified medical expenses.

An HSA, or Health Savings Account, is a fantastic financial tool designed to help you save for medical expenses while enjoying significant tax benefits. This account works hand-in-hand with a high-deductible health insurance plan, making it an ideal choice for those looking to manage their healthcare costs wisely.