What is a health savings account?
Reduce taxes with an HSA. One of the key benefits of an HSA lies in the triple tax benefit associated with this type of account. “Contributions are typically made with pretax dollars,” says Taylor Hammons, head of retirement plans at Kestra Financial in Austin, Texas. In addition, when you use the money in the account to pay for qualified health care expenses, you won’t have to pay taxes on the withdrawals in most states. If the money in the account is invested and grows, you also don’t have to worry about tax-related expenses on the investment gains. “Any earnings on the assets in the account are tax-free,” Hammons says.
U.S. News & World Report, December 5, 2018
