Health savings accounts (HSAs) have grown tremendously in popularity over the past few years. You’ve probably heard of them or maybe your employer offers one. This memo will uncover answers to common questions you may have about HSAs.
A type of savings account that allows you to set aside money on a pre-tax basis to pay for qualified medical expenses.
In order to open an HSA, an individual must first enroll in a qualified high deductible health plan (HDHP).
HSAs are completely portable for employees, meaning you may take it with you if you change employers.
No. The balance can grow and carry from year to year and can also be invested.
Generally HSA funds can be used to pay for anything that your insurance plan considers a “covered charge,” including charges not paid by your health insurance because they were subject to a co-pay, deductible or coinsurance.
This information was developed as a general guide to educate plan sponsors, but is not intended as authoritative guidance or tax or legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation. In no way does advisor assure that, by using the information provided, plan sponsor will be in compliance with ERISA regulations.
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