Health Savings Accounts (HSA)

What is a health savings account (HSA)?

In simple terms, it is a type of personal savings account that allows you to set aside funds for certain qualified medical expenses and health care costs. They are considered the only triple-tax-advantaged account. This is because contributions to an HSA are not taxed, the interest you earn from the account grows tax-free, and you are not taxed on any withdrawals made from the account that you spend on qualified medical expenses.* 

What is considered a qualified medical expense?

The Internal Revenue Service (IRS) decides what HSA funds can be spent on. Some common items include chiropractic care, dental treatments, eye exams, and some costs related to Medicare. For a more comprehensive list of services considered a qualified medical expense, and thus can spend money from your HSA on, go to this IRS website. 

How do you set up a health savings account?

Many banks, credit unions, and other financial institutions offer health savings accounts. Click here to view our preferred vendor to go through when setting up a health savings account .  Keep in mind, you are only allowed to make contributions to a health savings account if you are actively enrolled in a High-Deductible Health Plan (HDHP), also known as an HSA-Eligible plan. Health savings accounts stick with you, even if you change employers. 

*Make sure to always consult a tax professional for any questions related to health savings accounts.