Health Savings Account (HSA)

Some employers are offering High Deductible Health Plans (HDHP’s) to their employees as part of their benefit package. If you enroll in the HDHP, you can open a Health Savings Account (HSA) to help pay for medical expenses. Contributions to the HSA can be made by you or your employer or both. Contributions are tax deductible and some employers will even withhold your contribution amount from your payroll check pre-tax and deposit the money into your HSA for you! As you incur expenses that you must pay out of your pocket, you can use the funds from the HSA to pay these expenses, and as long as the expense is a Qualified Medical Expense, you never pay taxes on the money. If you do not have many expenses during a year, and you have money left in your HSA, the balance carries over from year to year. There is no “use it or lose it” provision associated with the HSA. You can also invest HSA funds to earn a higher level of interest on your money. Earnings on HSA funds are not taxed. HSA’s are also portable, meaning that if you leave your current employer, you take your HSA with you and you still have access to all of the funds that were in the account when you left. We are including some educational information about HSA’s in this website. Please look around and see why an HSA is a good idea - for EVERYONE!