A Health Savings Account (HSA) is a tax-favored account used in conjunction with an HSA-qualified high deductible health plan. An HSA is a unique tax-advantaged account that employees can use to pay for current or future healthcare expenses. With an HSA, employees have:
- a tax-advantaged savings account that employees can use to pay for eligible medical expenses as well as deductibles, co-insurance, prescriptions, vision and dental care.
- unused funds that will roll over year to year. There’s no “use or lose it” penalty.
- potential to build more savings through investing. You can choose from a variety of HSA self-directed investment options.
- additional retirement savings. After age 65, funds can be withdrawn for any purpose without penalty.