Health Savings Account Overview
An HSA, or Health Savings Account, is a unique tax-advantaged account that can be used to pay for current or future healthcare expenses. When combined with a high-deductible health plan, it offers savings and tax advantages that a traditional health plan can’t duplicate. With an HSA, employees will have:
- A tax-advantaged saving account that they can use to pay for eligible medical expenses as well as deductible, co-insurance, prescriptions, vision, and dental care.
- Unused funds that will roll over year to year. There’s no “use it or lose it” penalty.
- Potential to build more savings through investing. Employees can choose from a variety of HSA self-directed investment options with no minimum balance required.
- Additional retirement savings. After age 65, funds can be withdrawn for any purpose without penalty but may be subject to income tax if not used for qualified medical expenses.