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