A Health Savings Account (HSA) is type of savings account that lets you set aside money on a pre-tax basis to pay for qualified medical expenses. By using untaxed HSA dollars to pay for deductibles, copayments, coinsurance, and some other expenses, you may be able to lower your overall health care costs. HSA funds generally may not be used to pay premiums.
HSA basics:
- Contribute annually on a pre-tax basis up $7,300 for a family; $3,650 for an individual.
- Funds can be invested, and grow on a tax-free basis.
- When used to pay for medical costs, HSA funds are withdrawn tax-free.
- You take your HSA with you if, and when you leave your employer.
Check with your company, but you can also open an HSA through some banks and other financial institutions.
