Health Savings Accounts

Employers can contribute to the Health Savings Accounts (HSA) but aren't required to do so.

If your employer-sponsored health plan has high deductible (at least $1,000 for individual and $2,000 for family), you may sign up for a HSA.

HSA is a relatively new health coverage option. It is not a health insurance plan, but a special tax-sheltered savings account, combined with a high-deductible health plan you can use to pay for qualifying medical expenses.

You may incur penalties (about 10%) when you withdraw funds from the account for any purpose other than qualifying medical expenses.

Unused funds remain in the account and may be invested at your discretion. The account accumulates and earns tax-free interest or investment returns until retirement.

Click here to get free, no-obligation HSA-eligible health insurance quotes.

To learn more about Health Savings Accounts, click here.

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