What's a HSA? Understanding Health Savings Accounts

A 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. HSAs are designed to help individuals with high-deductible health plans save money for medical expenses while also providing tax benefits.

Here are some key points to understand about HSAs:

• Contributions to an HSA are tax-deductible
• Funds in an HSA can be invested and grow tax-free
• Withdrawals for qualified medical expenses are tax-free
• HSA funds roll over year to year
• HSAs are portable, meaning you can keep your HSA even if you change jobs or health insurance plans

Having an HSA can provide financial flexibility when it comes to managing healthcare costs and can be a valuable tool for saving for future medical expenses. By understanding how HSAs work and the benefits they offer, individuals can make informed decisions about their healthcare finances.

A Health Savings Account (HSA) is a great way for individuals with high-deductible health plans to save on healthcare costs while enjoying remarkable tax advantages. With contributions made on a pre-tax basis, you're effectively reducing your taxable income and keeping more money in your pocket for future expenses.