Health Savings Accounts (HSA)

A Health Savings Account (HSA) is a tax-advantaged savings account designed for employees enrolled in a High-Deductible Health Plan (HDHP). It allows employees to set aside pre-tax income to cover eligible healthcare expenses while providing long-term financial benefits.

By offering an HSA, employers provide a flexible and tax-efficient way for employees to manage healthcare expenses while encouraging long-term financial planning.

Key Benefits of an HSA:

Triple tax advantages

Contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are also tax-free.

Rollover feature

Unused funds carry over year to year, making an HSA an excellent tool for long-term healthcare savings.

Retirement savings opportunity

After age 65, HSA funds can be used for non-medical expenses without penalties (though standard income taxes apply).

Portability

Employees retain ownership of their HSA even if they change jobs or retire.

Eligible Expenses Covered by an HSA:

Doctor visits, hospital stays, and emergency care

Prescription medications and specialty treatments

Dental and vision care, including braces, glasses, and contact lenses

Long-term care services and certain over-the-counter medications