What is a Health Savings Account (HSA)?
An HSA is a tax-advantaged account that you set up with a qualified HSA trustee or custodian to pay or reimburse yourself for qualified medical expenses incurred by you, your spouse or your family members. You must enroll in a so-called “high deductible health plan” (HDHP) and satisfy other eligibility requirements to establish an HSA. The money deposited in your HSA is deductible on your federal income tax return. The money and the earnings can then be withdrawn tax-free to cover qualified medical expenses. Unused balances roll over from year to year.
An HSA is a tax-exempt account that you set up with a qualified HSA trustee or custodian to pay or reimburse you for qualified medical expenses incurred by you, your spouse or your family members. You must enroll in a so-called “high deductible health plan” (HDHP) and satisfy other eligibility requirements to establish an HSA. The money deposited in your HSA is deductible on your federal income tax return. The money and the earnings can then be withdrawn tax-free to cover qualified medical expenses. Unused balances roll over from year to year.
Recent federal legislation created the health savings account or HSA. An HSA enables your employees to save pre-tax dollars for future medical, retirement, or long-term care premium expenses. Your employees own the health savings account. Money in their accounts can roll over from year to year, and employees can take the account with them if they change jobs. The account can be used as an employee benefit, like a 401(k), providing your employees with a significant tax-free investment.
A Health Savings Account (HSA) is a tax-exempt trust or custodial account that you set up with a qualified HSA trustee to pay or reimburse certain medical expenses you incur. A qualified HSA trustee can be a bank, an insurance company, or anyone already approved by the IRS to be a trustee of IRAs or MSAs. CDI has no jurisdiction over HSAs, even though the HSA may accompany an insurance product.
Related Questions
- I am enrolling in an HSA (Health Savings Account). Do I enter the employee contribution amount or the employee AND the employer contribution amount in the Annual Pledge field?
- I am enrolling in a HSA (Health Savings Account). Do I enter the employee contribution amount or the employee AND the employer contribution amount in the Annual Pledge field?
- What is a Health Savings Account (HSA)?
