Health Savings Accounts

A health savings account (HSA) is a savings account used specifically to pay for qualified medical expenses. HSAs were designed to encourage people to save for future health costs. HSAs can be used to pay for medical expenses for an individual or for a family. HSAs are beneficial because they offer tax advantages, which go to the holder of the account. There are three main tax benefits: (1) contributions to HSAs are tax-deductible, (2) taxes on interest and dividends are deferred and may even be exempt at withdrawal, and (3) contributions and earnings can be withdrawn tax-free at any time if they are used for quali