What Is My HSA? A Guide to Understanding Your Health Savings Account

So, you've heard the term 'HSA' thrown around, but what exactly is your HSA?

Your Health Savings Account (HSA) is a tax-advantaged savings account that allows you to set aside money for medical expenses. Here's a helpful guide to understand your HSA:

• Tax Benefits: Contributions to your HSA are tax-deductible, and withdrawals for qualified medical expenses are tax-free. This can provide significant savings on your healthcare costs.
• Ownership and Portability: Your HSA belongs to you, meaning it stays with you even if you change jobs or health plans. It can also be passed on to your beneficiaries.
• Contribution Limits: There are annual limits on how much you can contribute to your HSA. For 2021, the limit is $3,600 for individuals and $7,200 for families.
• Qualified Expenses: HSA funds can be used for a wide range of medical expenses, including deductibles, copayments, prescriptions, and certain over-the-counter items.
• Investment Options: Some HSAs offer the opportunity to invest your contributions, potentially allowing your savings to grow over time.

Understanding your HSA can help you take full advantage of its benefits and save money on healthcare expenses.

So, you've heard the term 'HSA' thrown around, but what exactly is your HSA? It's more than just an acronym; it represents a powerful financial tool for managing your medical expenses.

Your Health Savings Account (HSA) is a tax-advantaged savings account that allows you to set aside money for medical expenses. But did you know it can also serve as a long-term savings strategy? Here’s a comprehensive guide to understanding your HSA: