What Type of Plan is an HSA? Understanding Health Savings Accounts

Health Savings Accounts (HSAs) are a type of financial account that allows individuals to set aside money on a pre-tax basis to pay for qualified medical expenses. This account is designed to work in conjunction with a high-deductible health plan (HDHP).

HSAs offer a triple tax advantage, meaning the contributions are tax-deductible, the money grows tax-free, and withdrawals for medical expenses are also tax-free.

Contributions to an HSA can be made by the individual, their employer, or both, but the total contribution cannot exceed the annual limits set by the IRS. The funds in an HSA roll over from year to year, so there is no

Health Savings Accounts (HSAs) are like financial superheroes, helping individuals save money on a pre-tax basis for those unexpected medical bills! Think of them as your personal health care fund, specially designed to work alongside a high-deductible health plan (HDHP).