What are the advantages of an HSA?
Who is this for?
If you‘re trying to figure out which type of health spending account is right for you, this information can help you decide.
A health savings account can have advantages beyond helping you build savings for your future.
- Tax benefits: You can put post-tax money into your HSA and deduct the contributions from your income taxes. The money you take from your HSA to pay for qualified medical expenses and any investment gains on your account are tax-free. And any contributions you get from other people, like family members or your employers, don’t count as taxable income.
- Control: You own and control the money in your HSA. You decide how to spend it.
- Flexibility: You can pay for things that your medical plan may not cover like eyeglasses and orthodontic services, in addition to the usual medical expenses.
- Convenience: You can use your HSA debit card to pay for qualified medical expenses wherever you go.
- Portability: You can take your HSA with you. If you move to another state or get health care coverage through an employer or another insurer, the funds in your HSA are still available for you to use.