What is an HSA (Health Savings Account) and How Does It Work?

A Health Savings Account, commonly known as an HSA, is a tax-advantaged savings account that allows individuals to save money for qualified medical expenses. Here's how it works:

1. Contributions: Individuals can make pre-tax or tax-deductible contributions to their HSA.
2. Withdrawals: Withdrawals from the HSA for qualified medical expenses are tax-free.
3. Portability: HSAs are portable, meaning the funds belong to the individual and can be carried over from year to year.
4. Interest: The money in an HSA can grow tax-free through investments like a traditional savings account.

Overall, an HSA offers a tax-efficient way to save for healthcare costs, both now and in the future.

A Health Savings Account (HSA) is a powerful financial tool that provides a smart way for individuals to save money for qualified medical expenses. These accounts are designed to help you take control of your healthcare costs while enjoying significant tax benefits.