HSA Tax Benefits

As long as a qualifying High Deductible Health Plan (HDHP) is in effect, amounts contributed to a Health Savings Account (HSA) are excluded from an individual’s income at the federal level.  Once funds are in the HSA, they can grow tax-free.  Also, as long as funds are used for “qualified medical expenses,” they can be withdrawn from the account tax-free.  No other financial product provides this “triple-tax advantage.”