What is the advantage of an HSA?
A health savings account (HSA) can help you lower your taxes, pay for health care more easily and even save for retirement. HSAs are only available with high-deductible health plans. You can use HSA funds to pay for eligible health care expenses and for out-of-pocket costs your health plan doesn't cover.
What is the best way to use an HSA?
Ideal use. The ideal way for savers to use HSAs is by contributing the annual maximum, investing the money and paying for present-day health costs out of pocket via other savings, according to financial advisors. This allows time for HSA money to grow tax-free.
How does a Health Savings Account HSA work quizlet?
A Health Savings Account (HSA) is to pay or reimburse certain medical expenses you incur. You must be an eligible individual to qualify for an HSA. 2. Contributions made by your employer may be excludedfrom gross income.