1. What is a Health Savings Account (HSA)?
An account that you put money into to save for future medical expenses.
2. Who can have an HSA?
Any adult can contribute to an HSA if they:
-have coverage under an HSA-qualified "high deductible health plan"
-have no other first dollar medical coverage
(other types of insurance like specific injury insurance or accident, disability,dental,vision or LTC insurance is permitted)
-are not enrolled in Medicare
-cannot be claimed as a dependent on someone else's tax return
**Contrubutions to your HSA can be made by you, your employer, or both.
3. What are some advantages of HSAs?
-Affordable- you should be able to lower your health insurance premiums by changing to health insurance coverages with a higher deductible.
- Portable- account is completely portable. You can keep your HSA even if you:
*change your medical coverage
*become unemployed
*change jobs
*move to another state
-Tax Savings- An HSA provides you triple tax savings:
*tax deductions when you contribute to your account
*tax-free earnings through investment
*tax-free withdrawals for "qualified medical expenses"
4. How can I use my HSA?
-You can use the money in the account to pay for any "qualified medical expense"
Learn more about NC Health Savings Accounts |
