Health Savings Account (HSA)

A savings account that allows you to put money into the account tax-free and can only be used to pay for qualified health care expenses. You may be eligible for a HSA if you have a high deductible health plan.

Benefits of a health savings account:

  • Contributions are tax-deductible
  • Interest earned is tax-free
  • Withdrawals for qualified medical expenses are tax-free
  • Unused funds and interest are carried over, without limit, from year to year
  • You own the money in the HSA and it is yours -- even when you change plans or retire
  • The account is administered by a trustee/custodian

 

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