HSA Guide
What's a HSA? Understanding Health Savings Accounts
Published October 19, 2024
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Get the appWhat is an HSA and why use one
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:
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.
Key HSA tax benefits and features
- 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