What is an HSA?
An HSA is a type of specialized savings account where you can deposit pre-tax funds to pay for approved medical costs.
Who is eligible for an HSA?
Enrollment in a qualified high-deductible health plan (HDHP) is required for opening an HSA.
What are HSAs’ triple-tax benefits?
- All contributions are tax-deferred and could be future tax-free (see #3).
- Investment opportunities exist for contributions, providing tax-free growth (see #3).
- When withdrawals are made for approved medical costs, they are tax-free.
What happens to my HSA if I switch employers?
HSAs are completely transferable, so you may take them with you when you potentially change jobs.
Do HSA funds expire at year-end?
No. You have the option to invest the remaining amount or let it roll over and accumulate annually.
What expenses can I cover with my HSA?
Those that are classified as “covered charges” by your insurance plan—including ones that your health insurance does not cover because of co-pays, deductibles, or coinsurance—may be paid with HSA funds.
Information provided by RPAG