A Health Savings Account (HSA) is a bank account that you can use to pay for qualified medical expenses or save for retirement. HSAs are considered triple-tax-advantaged accounts -- the money is deposited and grows tax-free, and disbursements from the account are tax-free when used to pay for qualified medical expenses!
They offer tax savings.
If you chose to participate in your employer’s HSA, funds are deposited from your paycheck before taxes, meaning you save on every dollar you contribute!
You can invest your money.
Like a 401(k) or other retirement account, funds in your HSA are investable and grow tax-free.
Your money is your money.
Money you or your employer contributes to your HSA is truly your money – you can even take it with you if you change jobs.
*Just because a service is not covered by insurance doesn’t mean it’s not a qualified medical expense. Money in your HSA account can be used to pay for these services (refer to IRS 213d list for a list of eligible expenses). If the HSA funds are not used for qualified medical expenses, it must be reported as income on your taxes.