Wouldn’t it be nice to make tax-deductible contributions to keep rising health care costs at bay? Well, you can with an Health Savings Account (HSA). An HSA is a personal savings account to save money for qualified medical expenses including medical, dental, prescription and vision expenses.
If you have a qualified high-deductible health plan (HDHP), there is a good chance you qualify for an HSA account. With an HSA, you control how much of your pre-tax dollars are deposited into your account. As long as you don’t go over the limits for your insurance coverage, you can contribute as much of your pre-tax dollars as you want until your tax return is due for the year.
Advantages you’ll enjoy with an HSA account:
- Tax-free withdrawals
- Tax deferred earnings
- Balance that can carry over from year to year
- You control how much money you contribute to the account