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.

The University of Minnesota contributes $750 (Individual) and $1,500 (Family) to your HSA each year.
 

_{*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.}