5 HSA Facts and Myths
Established in 2003, health savings accounts (HSAs) offer individuals a tax-friendly way to set aside money for medical expenses. They are an innovative, flexible way to save money and pay for health care expenses now and in the future. If you have a high deductible health plan (HDHP), an HSA can be a valuable companion, offering important tax advantages and long-term savings potential.
An HSA is a tax-advantaged savings account that individuals can use to pay for qualified medical expenses. These accounts are available to those enrolled in an HDHP, and many HDHPs offer the option to open and contribute to an HSA. Funds in an HSA can be used for various eligible health care expenses, such as copays, prescriptions, dental care and vision-related costs. The accounts are often used to help offset the higher deductibles and out-of-pocket costs that come with HDHPs.
If you are enrolled in an HSA or will consider enrolling in one next year, understanding common facts and myths can help you make educated decisions about plan enrollment and health care spending.
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