HSAs are available for people with a qualified high deductible health plan. Learn more about the basics of an HSA to see if it’s the right solution for you!
The largest difference between a Flexible Spending Account (FSA) and a Health Savings Account (HSA) is an individual controls an HSA and funds roll over from year to year, while an employer owns the FSA and funds must be used in the plan year or an individual loses them.
They’re cutting edge and popular with millennials. Many employers have moved to consumer directed health plans, and a portion of our nation’s young adults are opting for the higher deductible plans.
High Deductible Health Plan min/max annual deductable:
Family: $2,800 | $14,000
They increase engagement and control. You can manage your money and have more control over how and when to spend it.
They are an IRA in disguise and have a Triple Tax Advantage. You can contribute to your HSA and accrue interest just as you would in an Individual Retirement Account (IRA). In fact, funds from an existing IRA can even be rolled over into an HSA. HSAs are also popular for their triple-tax advantage:
The Internal Revenue Service (IRS) identifies the types of medical products and services that qualify. Types of eligible medical expenses include services for medical, dental, and vision as well as many over-the-counter medicines and products.
If your employer offers HSAs through HSA Central, contact them before enrolling. This ensures you’re enrolled under the correct employer group.
Consult a tax advisor