Health Savings Account (HSA)
As the cost of health care continues to climb, Americans are looking for ways to get more affordable health care coverage. Health Savings Accounts (HSAs), created by the 2003 Medicare bill, offer key advantages over other medical savings accounts.
An HSA is available for any individual covered under a qualified high deductible health plan (HDHP). Money deposited into your HSA is non-taxable and belongs to you. It can follow you from job to job and into retirement. Plus, your savings accrue each year with no cap on accumulation and no tax on earnings.
Funds in HSAs may be withdrawn, tax-free, to pay for qualified medical expenses. Prescription drugs and long-term care are included in the long list of expenses that qualify.
Find out if an HSA is the right option for you:
- Learn more about the benefits in the Overview of HSAs.
- Read our frequently asked questions to find out more about how and when contributions and withdrawals can be made and many other details of owning an HSA.
- Get the details and forms to open an HSA.
If you have further questions, call our Client Contact Center at 800.209.9010 for assistance.
The information contained on these pages is for general educational purposes only, individuals should consult their financial advisor or legal counsel to determine how these regulations affect their unique situation.