What is a Health Savings Account?

A Health Savings Account (HSA) is designed for people with High Deductible Health Plans. An HSA is like an IRA or a 401(k) for medical expenses. It’s a complement to traditional health insurance, enabling you to pay for current health expenses and save for future medical expenses on a tax-free basis*. If you change jobs or move to another city or state, your HSA can move with you. Unlike a flex plan with its “use it or lose it” rule, your HSA money rolls over from one year to the next. Best of all, you own and control the money in your HSA. All decisions on how to spend and/or invest the money in your account are made by you.

Because unused balances in your account roll over from year to year, your account balance may grow. As your contributions and gains increase, you can make tax-free withdrawals* for qualified health care expenses at any time. This is particularly important later in life when your health care costs may be greater. Best of all, even if you never use the money for medical expenses, it stays in your account and can be withdrawn for any purpose after age 65. At that time, you’ll pay only income tax on the monies you withdraw for non-health related expenditures.

Back to Account Information

Find out more information:

• What is a Health Savings Account?
• Who is eligible for an HSA?
• What are the tax benefits and regulations?
• HSA Contributions
• Making Payments with your HSA
• Contribution Guidelines