What are the advantages to an account holder with an HSA?
A. HSAs allow full tax advantage to funds saved for qualified medical expenses: contributions are tax-deductible, interest earnings accrue tax-free, distributions (if made for qualified health expenses) are tax-free. Account holders can use the funds for non-health expenses on a taxable basis. Additionally, funds can accumulate for future medical expenses and are portable from one employer to the next. Account holders have complete control over how to spend the money as they own the funds.
