I heard that a Health Savings Account (HSA) is a special tax-sheltered account that is similar to an IRA, but overall how does an HSA work?
The savings account portion of the HSA plan works in conjunction with a high deductible health insurance plan. All the money deposited in the HSA is 100% tax-deductible which makes those dollars tax-free. The insurance company pays the big bills (covered expenses in excess of the deductible) and you pay the small bills with tax-free money in your HSA account. You can even use these tax-free dollars to pay for medical expenses not covered under the insurance plan, such as dental, vision, alternative medicines etc. What you don t use is yours to keep and accumulate towards your retirement.
Related Questions
- Im on the HDHP and participate in the Health Savings Account (HSA). Can I also participate in the Health Care Flexible Spending Account (FSA) through WageWorks?
- I heard that a Health Savings Account (HSA) is a special tax-sheltered account that is similar to an IRA, but overall how does an HSA work?
- WHAT IS THE DIFFERENCE BETWEEN A FLEXIBLE SPENDING ACCOUNT (FSA) AND A HEALTH SAVINGS ACCOUNT (HSA)?
