Health Savings Account
If you are enrolled in a qualified High Deductible Health Plan, a Health Savings Account (HSA) provides a tax-advantaged way to save for qualified medical expenses.
Benefits of an HSA include:
- Pre-tax - With an HSA, contributions go from your paycheck to your HSA before you’re taxed, and you can use funds from the HSA to pay medical expenses that are not covered by your HDHP.
- Tax-free - Funds within the HSA grow tax free until withdrawn and are never taxed as long as they are used for qualified health care expenses (including dental and vision).
- Tax-deferred - Interest earnings are tax-deferred, and if used to pay qualified medical expenses, are also tax-free.
- Money is yours to keep - Unused money in your HSA isn’t “use it or lose it.” It continues to grow from year to year, even if you change jobs, switch your health plan, become unemployed, retire or move to another state.
Find out more about what HSAs have to offer at your local branch.
Consult your tax advisor regarding deductibility of interest and potential tax savings.