Health Savings Accounts (HSAs) are tax-favored savings arrangements for individuals covered by high deductible health plans. Individuals can use the money that they save in an HSA to pay for medical expenses incurred by themselves, their spouses, or their dependents. Each depositor is insured to at least $250,000.
- Contributions to your HSA are tax-deductible.
- Contributions made by your employer are excluded from your income.
- Earnings are tax-deferred.
- If used for qualified medical expenses, HSA assets are tax-free.
- HSA assets can be used for retirement.
Qualified Medical Expenses
- Medical Expenses, including doctor visits, prescriptions, transportation to get medical care, and certain dental and vision care
- Qualified long-term care insurance
- Health plan premiums when unemployed
- Health plan premiums during COBRA (continuation-of-benefit) coverage
- Certain health insurance after age 65