What are the benefits of opening an HSA?
The money you contribute to your HSA comes out of your paycheck before it is taxed, lowering your taxable income. Any HSA contributions you make in addition to your payroll deductions (subject to IRS limits) are fully deductible from your income tax. As long as you use the HSA for qualified health care expenses, you pay no penalty or taxes whenever you withdraw funds from your account. In addition, any earnings on your HSA are not taxed. You might think of your HSA as a vehicle that may be used on a tax-deferred basis to save for health care expenses from now through your retirement.
