What is HSA? A Comprehensive Guide to Health Savings Account

Health Savings Account (HSA) is a tax-advantaged financial account that allows individuals to save and pay for medical expenses tax-free. It is designed to help individuals with high-deductible health plans save money for medical expenses now and in the future.

Here are some key points to understand about HSA:

• HSA contributions are tax-deductible, reducing your taxable income.
• Money in an HSA can be invested and grow tax-free.
• Withdrawals for qualified medical expenses are tax-free.
• HSA funds roll over year after year, unlike Flexible Spending Accounts (FSAs).
• HSA account is owned by the individual, allowing for portability even if you change jobs or health plans.

Overall, HSA provides a triple tax advantage - tax-deductible contributions, tax-free growth, and tax-free withdrawals for medical expenses.

A Health Savings Account (HSA) is an incredible tax-advantaged financial tool that lets you save money specifically for medical expenses, providing peace of mind for those unforeseen health issues. Designed for individuals enrolled in high-deductible health plans, HSAs empower you to take control of your healthcare spending while enjoying tax benefits.