Health Savings Accounts
High-deductible health care plans are frequently offered both by employers and third-party insurers as a way to keep monthly premium costs down. This may allow you to significantly increase your take-home pay, but can also put you at risk should you ever have an emergency in which you need to be able to meet that high insurance deductible.
A Health Savings Account (HSA) allows people utilizing a high-deductible health plan to save a little bit at a time in order to meet their deductible, should a need arise.
To open and make contributions to a Health Savings Account (HSA), you need a minimum opening balance of $100, and must be enrolled in a high-deductible health plan. Speak with your employer or seek counsel from your insurance representative for more information regarding the legal definition of a high-deductible plan.
Contributions to an HSA may be tax-deductible and may earn tax-exempt dividends. Please note that the maximum annual HSA contribution is established by the Internal Revenue Service. Be sure to consult a tax professional to learn more about the various Internal Revenue Service regulations which oversee your Health Savings Account (HSA).