Health Savings Account (HSA)
A Smart Way to Save for Your Health, Your Taxes, and Your Retirement
- A Health Savings Account (HSA) is a tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in a High Deductible Health Plan (HDHP)
- The funds deposited into the account earn tax-free interest just like an individual retirement account (IRA). They can be withdrawn to pay for qualified medical expenses, tax-free. And funds that aren’t used can roll over and continue to earn tax-free interest, year after year, without the “use-it-or-lose it” risk.
- Health Savings Accounts will change the way you meet your health care needs because they are designed to help health-conscious individuals save for qualified medical and retiree health expenses on a tax-advantaged basis.
- The government is also allowing a one-time-only rollover of Flexible Spending Accounts into HSAs and a once-in-a-lifetime rollover of IRA funds into an HSA (subject to annual HSA contribution limits.)
- For some more info from the IRS
