Health Savings Account (HSA)
How HSAs Work
An HSA paired with an HSA-qualified health plan allows you to make tax-free* contributions to a federally-insured** savings account. Balances earn tax-free interestand can be used to pay for qualified medical expenses. HSA-qualified health planstypically cost less than traditional plans and the money saved can be put into your HSA.
HSA empower savings
- Lower monthly health insurance premiums
- Money put into your HSA is not taxed
- You earn tax-free interest on HSA balances
- HSA funds used for qualified medical expenses are not taxed
- You can invest your HSA funds for increased tax-free earning potential***
HSA funds remain yours to grow
With an HSA, you own the account and all contributions. Unlike flexible spending accounts (FSAs), the entire HSA balance rolls over each year and remains yours even if you change health plans, retire or leave your employer.
You can win with an HSA
Regardless of your personal medical situation, an HSA can empower you to maximizesavings while building a reserve for the future. Contrary to what many may think, healthy individuals aren’t the only users who benefit from an HSA.
Find more information on how you can sponsor a Health Savings Account for your employees.
We have more.
Better U modules cover a range of key financial concepts from paying for college to planning for retirement. Take advantage of this FREE resource to improve your financial literacy at your own pace!