Opening a Health Savings Account (HAS) can be an important tool or tax and financial planning. HSAs come with a significant premium savings over traditional health insurance plans. Contributions to a HAS are deducted on your individual tax return (subject to limits). Th the features of the plan are:
A qualified individual must be covered by a High Deductible health Plan (HDHP) and not be covered by other health insurance.
Contributions to a Health Savings Account (HAS) are used to pay current or future medial expenses of the account owner, his or her spouse, and any qualified dependent. Medical expenses must not be reimbursable by insurance or other sources and do not qualify for the medical expense deduction on a federal income tax return.
You pay for healthcare expenditures with tax-free money. Interest earned on your HAS Account is tax-free, too.
Based on premium savings alone, some HAD owners see 20-40% savings in the cost of Maintain insurance coverage each year. Over the years, a HEALTHY PERSON can save Some serious money.
You can use it as an emergency savings account.
The funds can be rolled over year to year. After the age 65 funds can be withdrawn for any purpose penalty free. You will pay income tax on the withdrawal if it is not used to pay for health care. You can continue to withdraw money from the HAS account tax-free to pay for medically necessary expenses.