What is an HSA? A Comprehensive Guide to Health Savings Accounts

Health Savings Accounts (HSAs) are financial accounts that offer individuals a tax-advantaged way to save for qualified medical expenses.

Here's everything you need to know about HSAs:

Benefits of an HSA:

• Contributions are tax-deductible
• Withdrawals for qualified medical expenses are tax-free
• Unused funds roll over year to year

Eligibility:

• Must be enrolled in a high-deductible health plan (HDHP)
• Cannot be claimed as a dependent on someone else's tax return

Contribution Limits:

• 2021 limits are $3,600 for individuals and $7,200 for families
• Individuals 55 and older can make catch-up contributions

HSAs offer flexibility, control, and potential long-term savings for healthcare expenses. Consider opening an HSA to take advantage of its benefits.

Health Savings Accounts (HSAs) are not just financial tools; they are a smart way to proactively manage your healthcare costs while enjoying significant tax benefits.