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| What is an HSA? |
A Health Savings Account (HSA) is a tax-favored saving account that is used in conjunction
with a high-deductible HSA-eligible health
insurance plan to make healthcare more affordable and to save for retirement. |
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HSAs are similar to IRAs, but even better:
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Pre-tax
money is deposited each year into an HSA and can be easily withdrawn at any time with no
penalty or taxes to pay for qualified
medical expenses. Withdrawals can also be made for non-medical purposes, but will be
taxed as normal income and are subject to a 10 percent penalty if done prior to age 65.
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Any
HSA funds not used each year remain in the account, and earn interest tax-free to
supplement medical expenses at any time in the future. |
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Like
an IRA, the account belongs to you, not your employer. But unlike an IRA, your employer
CAN contribute to your HSA.
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