Advertisement

3. Tax Advantages of an HSA

Contributions to an HSA are not subject to U.S. federal income tax, even when the individual withdraws funds for qualified medical expenses. Contributors can save on taxes when they deposit the money, when they use it for qualified expenses, and when they earn interest within the account.

HSA Health Savings Account

Aslan Alphan / Getty Images

Advertisement

More on Facty

Disclaimer

This site offers information designed for educational purposes only. The information on this Website is not intended to be comprehensive, nor does it constitute advice or our recommendation in any way. We attempt to ensure that the content is current and accurate but we do not guarantee its currency and accuracy. You should carry out your own research and/or seek your own advice before acting or relying on any of the information on this Website.