Health Savings Account (HSA): Which of the Following Statements is True?

In understanding a Health Savings Account (HSA), it is important to know that it is a tax-advantaged savings account to be used for medical expenses.

A few true statements about an HSA include:

• An HSA must be paired with a high-deductible health plan (HDHP).
• Contributions to an HSA are tax-deductible.
• Unused funds in an HSA roll over from year to year.
• HSA funds can be invested.
• Withdrawals for qualified medical expenses are tax-free.

A Health Savings Account (HSA) is not just a smart financial option; it can also help you save for both current and future medical expenses, ensuring you’re prepared for unexpected health situations.