Introduction
Health Savings Accounts (HSAs) are a popular retirement resource that can help individuals save for medical expenses while also providing tax advantages․ HSAs are designed to work in conjunction with a High Deductible Health Plan (HDHP) and offer individuals the ability to save and invest money for future medical expenses․ In this article, we will explore the benefits and limitations of HSAs and how they can be utilized as a retirement resource․
What is a Health Savings Account?
A Health Savings Account (HSA) is a tax-advantaged savings account that allows individuals to save money for medical expenses․ It is only available to those who have a qualifying High Deductible Health Plan (HDHP)․ Contributions to an HSA are made on a pre-tax basis and the funds can be used tax-free for qualified medical expenses․ Unlike a Flexible Spending Account (FSA), there is no “use it or lose it” rule, meaning the funds in an HSA can roll over from year to year․
