Sage-Tips

What is the purpose of a health savings account?

A type of savings account that lets you set aside money on a pre-tax basis to pay for qualified medical expenses.

Do you lose the money in your health savings account?

With an HSA, there’s no “use it or lose it” provision. This is one of the primary differences between an HSA and an FSA. If you put money in your HSA and then don’t withdraw it, it will remain in the account and be available to you in future years.

Is a health savings account a bank account?

A Health Savings Account (HSA) is a tax-advantaged personal savings account that helps those with HDHP (High Deductible Health Plan) save money on many out-of-pocket medical expenses like doctor visits, vision and dental care, and prescriptions. An HSA gives you more control over your health care spending.

What banks offer health savings accounts?

A health savings account allows people to save money for certain eligible medical costs. Reasons to look for banks offering health savings accounts include: lower insurance premiums. funds saved and spent from an HSA account are tax-free.

Who can contribute to a health savings account?

Are covered under a qualifying high-deductible health plan which meets the minimum deductible and the maximum out of pocket threshold for the year

Are not covered by any other medical plan,such as that for a spouse

Are not enrolled in Medicare

Are not enrolled in TRICARE or TRICARE for Life

Are not claimed as a dependent on someone else’s tax return

What are the advantages of having health savings account?

The Advantages of Health Savings Accounts Many Expenses Qualify. Eligible expenses include a wide range of medical, dental, and mental health services. Others Can Contribute. Pre-Tax Contributions. Tax-Deductible After-Tax Contributions. Tax-Free Withdrawals. Tax-Free Earnings. Annual Rollover. Portability. Convenience.

How can health savings account help you save money?

You decide how much money to set aside for health care costs.

You control how your HSA money is spent.

Your employer may contribute to your HSA,but you own the account and the money is yours even if you change jobs.

Any unused money at the end of the year rolls over to the next year and is yours indefinitely.