Real answers for your healthcare questions
What is an HSA and how does it work?
Answer
A Health Savings Account, or HSA, is a tax advantaged account you can use to pay qualified medical expenses if you meet the eligibility rules. The money belongs to you and can generally stay in the account from year to year and move with you when you change jobs.
What to Know
To contribute, you generally need qualifying high deductible health plan coverage and cannot have disqualifying other coverage, be enrolled in Medicare, or be claimed as another person's tax dependent. Contributions may receive tax advantages, and qualified withdrawals for medical expenses can generally be tax free.
What to Do Next
Confirm that your health plan is HSA eligible before contributing. Keep receipts for qualified expenses and review the IRS contribution limits and eligibility rules each year because they can change.
Agent Perspectives
Be the first agent to share a perspective
Are you a licensed agent? Help clients with practical advice. Your name and profile appear with your answer.