What are HSA and ZFSA? All you need to know about Health Savings Account and Zero-Fee Savings Account

Health Savings Account (HSA) and Zero-Fee Savings Account (ZFSA) are two financial tools that can help you boost your savings and manage healthcare expenses effectively.

Health Savings Account (HSA) key points:

• It is a tax-advantaged savings account for individuals with a high-deductible health plan.
• Contributions to an HSA are tax-deductible, and withdrawals for qualified medical expenses are tax-free.
• There are annual contribution limits set by the IRS.
• HSA funds can be invested for potential growth.

Zero-Fee Savings Account (ZFSA) key points:

• It is a savings account that does not charge any fees for maintenance or transactions.
• ZFSA offers a safe place to park your savings while earning interest.
• These accounts are typically offered by online banks or fintech companies.
• ZFSA can be a good option for those looking to maximize their savings without worrying about fees.

Both HSA and ZFSA can play a crucial role in your financial well-being. Understanding how each account works can help you make informed decisions about saving and managing your money.

Health Savings Account (HSA) and Zero-Fee Savings Account (ZFSA) offer unique benefits that can enhance your financial health and empower you to manage healthcare costs efficiently.