What is a Heath Savings Account (HSA)?
A Health Savings Account is a tax-advantaged account used in conjunction with a high-deductible health plan, like the WaMu High Deductible, which you can establish to pay for current and future qualified medical expenses for yourself, your spouse and your dependents. Contributions, earnings and distributions to pay for current and future qualified medical expenses are not subject to federal taxation. HSAs are authorized by Section 223 of the Internal Revenue Code and you must be covered by a high-deductible health plan, like the WaMu High Deductible, to be able to take advantage of an HSA. You can make pre-tax or tax-deductible contributions to an HSA for use on health care expenses now, or to save for health care expenses in your future. Any interest you earn on your account or investment gains you make on your account are tax-exempt, and withdrawals from your account for qualified medical expenses are tax free.
