Health Savings Accounts
A Health Savings Account (HSA) is an account that allows you to save funds to use for medical expenses. Each year you and/or your employer can make contributions to your account. You choose whether to use the funds for current bills or to save for future health care expenses.
Who is Eligible for an HSA?
You're eligible for an HSA if you're enrolled in a high-deductible health plan and not covered by other health insurance (with some exceptions). Also, you cannot be enrolled in Medicare, or be claimed as a dependent on someone else's tax return.
How Does it Work?
As funds accumulate in your HSA, you can use them to pay for current medical expenses, including expenses that your insurance may not cover, or save the money in your account for future or unexpected medical bills. Any unused funds carry over year-to-year. You keep your account even if you move, change jobs, or change your medical coverage.
What Are the Tax Benefits?
Contributions to your HSA are tax deductible. In addition, account earnings and withdrawals for qualified medical expenses are tax free.*
*Not intended as tax advice. Please consult a tax professional.