What is a HSA Medical Account? - Understanding the Basics of Health Savings Accounts

Health Savings Account (HSA) is a tax-advantaged medical savings account available to individuals who are enrolled in a High Deductible Health Plan (HDHP).

Here are some key points about HSA:

• Contributions to HSA are tax-deductible.
• Money in the account grows tax-free.
• Funds in HSA can be used to pay for qualified medical expenses.
• Unused funds can roll over from year to year.
• HSA is portable, meaning it stays with you even if you change jobs or insurance providers.

It's important to know that:

• Not everyone is eligible for an HSA. You must be enrolled in an HDHP to qualify.
• There are annual contribution limits set by the IRS.
• Using HSA funds for non-qualified expenses may result in penalties.

Overall, HSA provides a way for individuals to save for medical expenses while enjoying tax benefits.

Health Savings Accounts (HSAs) are not just savings accounts; they’re strategic financial tools that empower you to manage your healthcare costs efficiently. With an HSA, you can prepare for unexpected medical expenses while benefiting from tax deductions.