What is a Health Savings Account (HSA)?

A Health Savings Account, or HSA, is a type of tax-advantaged savings account in Virginia. It allows you to save money for medical expenses on a tax-free basis. Funds placed in an HSA can be used for any qualified medical expense such as copayments, deductibles, and coinsurance. HSAs are often provided through employers as part of their health insurance plans. Individuals, however, may open their own HSA if they are covered by a high-deductible health plan. The plan must meet certain federal guidelines, including a minimum deductible and an annual out-of-pocket maximum. One benefit of an HSA for individuals is that all interest earned from the account is tax free. This makes it an attractive savings tool for medical expenses. In addition, contributions to an HSA are tax deductible. This means that you can reduce the amount of your taxable income and possibly get a larger refund. Overall, a Health Savings Account is a great option to save for medical expenses. It can be opened through an employer or an individual can open their own. As long as the plan meets federal guidelines, contributions to the account are tax deductible. Furthermore, all interest earned by the account is tax free.

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What is a Health Savings Account (HSA)?

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