Posted by Boettcher Insurance Agency on
What are Health Savings Accounts (HSAs)
Health savings accounts (HSAs) are a special tax-advantaged account that helps you save money for the future medical and health-related expenses – tax free.
How HSAs Work
Withdrawals from HSAs to pay qualified medical expenses are tax free.
HSAs offer a triple tax benefit:
- HSA contributions are pretax. That is, you are not taxed on any of your contributions to an HSA-up to the annual limit.
- HSAs grow tax-deferred. As long as the money stays in your HSA, you generally pay no income tax, dividend tax, capital gains tax.
The combination of tax advantages means that HSA owners who take full advantage of their health savings accounts routinely save thousands each year in taxes and healthcare expenses.
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