It’s like an IRA for your family's health.
You can compare a Health Savings Account to an Individual Retirement Account, dedicated solely to medical expenses. Unlike an IRA, you decide when to use the money you save. So, you can plan for current or future medical expenses for you, your spouse and your dependents. A Health Savings Account is a special, tax-advantaged1 savings account that you can use along with your High Deductible Health Plan (HDHP) to help pay for qualified2 healthcare expenses before you reach your health insurance deductible.
- Make pre-tax contributions through payroll deductions (if available) or after tax contributions3
- Earn money tax-free through interest payments
- Pay for qualified healthcare expenses tax-free2
- Allows year-to-year rollover
- Account follows you regardless of employer or insurance coverage
2 HSA withdrawals made for non-qualified expenses are subject to ordinary income tax and may incur an additional 20% IRS penalty. Consult your tax advisor.
3 Combined total contributions cannot exceed the annual contribution limits outlined by the IRS