What is a Health Savings Account (HSA)?

An HSA is a unique, tax-advantaged account that can be used to pay for current or future healthcare expenses, and can also be used for retirement savings. When combined with a High-Deductible Health Plan (HDHP), it offers savings and tax advantages that a traditional health plan can't duplicate. Additional HSA benefits:

  • Contributions to HSAs are not subject to federal income taxes.*

  • Earnings to an HSA from interest and investments are tax-free.

  • Distributions from an HSA to pay for qualified medical expenses are tax-free.

 

*Federal tax savings are available regardless of your state. State tax savings may not be available in every state. HSA Bank does not provide tax advice. Consult your tax professional for tax-related questions. For more information concerning state taxes, please consult with your state department of revenue.

Health Account Videos

What is a Health Savings Account (HSA)?

A Health Savings Account, or HSA, is a unique, tax-advantaged account that can be used to pay for current or future healthcare expenses. When combined with a high-deductible health plan, it offers savings and tax advantages that a traditional health plan can't duplicate.

5 Reasons to Open a Health Savings Account (HSA)

From tax savings to retirement savings, learn the top 5 reasons to open a Health Savings Account (HSA).

Why Should I Contribute To My HSA?

By comparing the HSA contribution habits of three individuals with high-deductible health plans, this short video shows how contributing the maximum allowable amount to your Health Savings Account better prepares you for unexpected medical expenses, as well as retirement.

What is a Consumer Driven Health Plan (CDH)?

Learn how Consumer Driven Health Plans put you in charge of your healthcare. There is no minimum, so you can start small. Consumer Driven Health Plans help you pay for eligible medical expenses with tax-favored funds, all while reducing your taxable income.