Will I Save Money With a Health Savings Account?

5 Unique Advantages Health Savings Accounts Offer You

1. The cost of medical insurance premiums (monthly payments) can be substantially lower.
2. Your HSA contributions are made with pre-tax dollars.
3. Your HSA contributions can be invested just like in an Individual Retirement Account.
4. Your employer may also make contributions, which is not taxable income for you.
5. Earnings from investments do not count toward the contribution limits and accumulate within the account, tax-free!

HSA Money is Your Money

Unlike other similar savings accounts, HSAs are not "use-it-or-lose-it". Both the contributions and earnings in an HSA carry over from year to year. When money is withdrawn to pay for qualified medical expenses, it’s tax-free!

Your Health Savings Account is entirely portable and follows you if you change jobs. You determine how much will be contributed to it in any given year. Finally, you decide whether to pay current medical expenses from the account or to save the money for future expenses.

10 Must-Know Facts About HSAs

1. Premium costs (monthly payments) for a high-deductible health plan (which you need to have before you open an HSA) are significantly lower than those for low-deductible health plans.
2. HSA contributions are tax-deductible (subject to limitations).
3. HSA earnings are tax-deferred and do not count toward the contribution limits.
4. Contributions can be invested in the same manner as funds in an IRA.
5. If used for qualifying medical expenses, HSA Assets are never taxed.
6. Contributions can be carried over from one tax year to the next; they are not "use-it-or-lose-it" accounts.
7. HSA assets are portable.
8. You determine how much will be contributed in any given year.
9. You decide whether to pay current medical expenses from your HSA account or save the money for future expenses.
10. HSA features allow you greater control over your health care costs.