Health Savings Accounts, or HSAs, are tax-favored consumer savings arrangements for individuals and families covered by high deductible health plans (HDHPs).
An HSA is an IRA-like account that is designed exclusively for covering medical expenses incurred by the HSA owner, the HSA owner’s spouse and his or her dependents.
- HSA contributions (by the HSA owner) are excluded from taxable income.
- HSA earnings are tax-deferred.
- If used for qualified medical expenses, HSA assets are never taxed.
- HSA assets may be used without penalty for retirement once the HSA owner turns age 65. If not used for medical expenses, however, they will be subject to income taxes.
- Upon death, HSA assets become the property of a named death beneficiary, or of the HSA owner's estate. A spouse may treat the assets as his or her own HSA, while non-spouse death beneficiaries must treat such assets as ordinary taxable income.
- Great interest rate.
- Unlimited check writing.
- Visa HSA Card and ATM access.