Health savings accounts (HSA) are a tax-deductible way to pay medical expenses. If you have a HSA-compatible high-deductible health insurance plan, you may qualify for an HSA which can be used to cover medical costs covered by your health plan as well as such as dental and vision expenses as well as alternative treatments that are not normally covered by your health insurance policy. The money contributed to the HSA is tax deductible or made on a pre-tax basis if done through payroll deduction under a Section 125 plan. The funds also accumulate over time if not spent. There is no minimum deposit to a health savings account but there is a maximum contribution per year. The account is owned by the individual and the money is yours but it can only be spent on qualified medical expenses.
Health savings accounts can act as long-term savings if you are healthy and don’t need the money that has been deposited. The money is free from taxation as long as it is in the account or used on medical expenses. If you withdrawal funds for non-medical costs, there are penalties. The benefits professionals at Savage & Associates can explain the pros and cons of a health savings account. We have the knowledge and expertise to help you and your company create a proactive approach to wellness and healthcare.
Call 419-475-8665 or fill out our on-line request form for more information or to schedule an exploratory appointment with our experienced professionals at Savage & Associates.