Health Savings Account Learning Center

Introduction » What is an HSA? Why should I consider getting an HSA? What are qualified medical expenses? What insurance plans are HSA-compatible? How much can I contribute to my HSA? Is my money safe? How do I use the funds in my HSA? How do the tax savings work? Why should I get my HSA through eHealthInsurance? How can I get an HSA? HSA Calculators What is an HSA? A Health Savings Account (HSA) is a tax-favored saving account that is used in conjunction with a high-deductible HSA-compatible health insurance plan to make healthcare more affordable and to save for retirement. HSAs are similar to IRAs, but even better: •  Pre-tax money is deposited each year into an HSA and can be easily withdrawn at any time with no penalty or taxes to pay for qualified medical expenses. Withdrawals can also be made for non-medical purposes, but will be taxed as normal income and are subject to a 10 percent penalty if done prior to age 65. •  Any HSA funds not used each year remain in the account, and earn interest tax-free to supplement medical expenses at any time in the future. •  Like an IRA, the account belongs to you, not your employer. But unlike an IRA, your employer CAN contribute to your HSA. The information above is provided for general purposes only and is not tax advice. eHealthInsurance urges you to consult with your accountant or tax advisor before opening a health savings account to determine if it is appropriate specifically for you.