The
ABC's of HSA's
Health Savings
Accounts, often referred to as an HSA, is a tax-exempt account with
a financial institution in which you accumulate savings to pay for
medical expenses. They work together with
a high deductible health insurance plan. Health Savings Accounts,
or HSA’s, were created by Congress
Health Savings Accounts,
often referred to as an HSA, is a tax-exempt account with a
financial institution in which you accumulate savings to pay for
medical expenses. They work together with a high deductible health
insurance plan. Health Savings Accounts, or HSA’s, were created by
Congress to combat rising medical costs by
providing an incentive for more consumers to pay “first-dollar”
medical expenses. HSA’s can provide significant tax benefits to
eligible individuals. Not only can HSA’s provide tax benefits
related to paying qualified medical expenses, they may also provide
benefits similar to many tax-favored retirement plans. Some of the
benefits of having an HSA are shown below.
-
Tax Savings –
HSA contributions can be deducted from your gross income on your
tax return, even if you do not itemize deductions
-
Individuals and
families can write off 100% of their deductible, up to a maximum
of $2,600 for an individual and $5,150 for a family
-
Funds left
to accumulate in your HSA can grow with tax deferred interest
earnings
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