Health Savings Accounts
A Health Savings Account (“HSA”) is an account created for individuals who are covered under high-deductible health plans (HDHP’s) to save for medical expenses that HDHP’s do not cover. Contributions are made into the account by the individual or the individual’s employer and are limited to a maximum amount each year. The contributions are invested over time and can be used to pay for qualified medical expenses, which include most medical care such as dental, vision and over-the-counter drugs.
The HSA account has three major tax savings: the money contributed into the account is tax deductible, it grows tax free, and certain withdrawals are tax free if they are for qualified medical expenses. To qualify for an HSA account, you must have coverage from a high-deductible health plan and you must not be enrolled in Medicare or be listed as a dependent on another person’s tax return.
Your Financial Institution, BestVest Investments and your BestVest Financial Consultant can help you determine if you qualify for a HSA and assist you in getting started.