Healthy Solutions Insurance strives to advocate, educate, and simplicate the insurance industry for our clients. Let’s start with the last of these fundamental aspects, simplicate, in describing an HSA. This is the first part of a three part series, check in every week for more helpful tips & info!
What is an HSA?
HSA stands for Health Savings Account. An 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).
How would I use an HSA?
You use the HSA to pay for qualified medical expenses. You can use it as you have expenses. Or you can save the funds for future expenses. You decide when you use your funds. You also decide what expenses you pay with your HSA funds. You can also invest the funds.
Who contributes to an HSA?
Anyone can contribute to your HSA. This includes you, your employer, your spouse or anyone else. You can then make tax-free withdrawals to pay for eligible medical, dental and vision expenses. This includes expenses for you, your spouse and your tax dependents.
How is an HSA different from my regular savings account?
An HSA offers triple tax savings.
- Pre-tax or tax-deductible contributions.
- Tax-free interest and investment earnings.
- Tax-free distributions, when used for qualified medical expenses.