Health Savings Accounts
A HEALTH SAVINGS ACCOUNT (HSA) IS A TAX-FAVORED SAVINGS ACCOUNT CREATED FOR THE PURPOSE OF PAYING MEDICAL EXPENSES.
Contributions to the HSA are 100% deductible (up to the legal limit) — just like an IRA.
Withdrawals to pay qualified medical expenses are never taxed.
Interest earnings accumulate tax-deferred, and if used to pay qualified medical expenses, are tax-free.
HSA money is yours to keep!
Unlike a Flexible Spending Account, unused money in your HSA isn’t forfeited at the end of the year; it continues to grow, tax-deferred.