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

Health Savings Account (HSA) is a type of savings account that allows individuals to set aside money on a pre-tax basis to pay for qualified medical expenses. It's like a personal savings account, but the funds are designated specifically for health care expenses.

Here are some key features of an HSA account:

• Individuals must be covered by a high-deductible health plan (HDHP) to be eligible for an HSA
• Contributions to an HSA are tax-deductible
• Any unused funds in the HSA can roll over year after year
• HSAs are portable, meaning they are not tied to a specific employer

Having an HSA account can offer various benefits such as:

• Lowering your taxable income
• Investment opportunities for long-term growth
• Flexibility in using funds for medical expenses
• Building a financial cushion for future healthcare needs

A Health Savings Account (HSA) is a special type of savings account designed to help individuals set aside money for future medical expenses. Think of it as a dedicated health savings pot where you can contribute pre-tax dollars!