Learning about Health Savings Accounts

james conti

Health savings accounts (HSA) can be used by employees of a business who have an insurance plan with a high deductible. These HSAs have become a very popular tool for employees to use. A health savings account is an investment that is similar to a bank account that allows individuals to deposit money in order to use the funds in the account to pay for various healthcare items later in life and usually at retirement. The individual who establishes the health savings account is the owner of the account and has control of the assets in the health savings account.

One of the largest benefits of a health savings account is that the funds can be added to the health savings account pre-tax and the earnings on the account are not taxed either. For example, you can have your employer withhold funds from your pay check before taxes are taken out, similar to a 401k.

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