Health Savings Account

A Health Savings Account (HSA) is a checking account that you can put money into to save for future medical expenses.  Limited to the following stipulations that you are:

• Individual ownership by an adult that has coverage under "high deductible health plan" (HDHP),

• have no other first-dollar medical coverage,

• are not enrolled in Medicare,

• Cannot be claimed on as a dependent on someone else's tax return.

The account is a tiered balance account, which accrues interest at different rates based upon the available balance in the account.   Contributions to an HSA can be made by the individual, their employer or both.   Total contributions are limited annually.  There may be tax advantages from having an HSA.  Consultation with a professional tax advisor is recommended prior to opening the account.