What is a Health Savings Account (HSA)?

A Health Savings Account (HSA) is a tax-advantaged medical savings account that is available in the state of Kansas. This savings account allows individuals and families to set aside money for medical expenses on a pre-tax basis. HSAs are typically paired with high-deductible health coverage plans, and the funds can be used to pay for current or future medical costs such as doctor’s visits, prescriptions, hospital services, and preventative care. Contributions that are made to an HSA are not subject to federal income tax and Kansas state income tax, up to certain limits. Additionally, any earnings that accrue from the account are not taxed. This makes HSAs attractive for people who are looking to manage their medical costs and save money on taxes. Funds deposited into HSAs can also be invested and withdrawn at any time without penalty, as long as they are used for qualified medical expenses. This allows people to save money for future medical expenses and ensure that they have the funds available. Furthermore, any unused funds in an HSA will roll over and remain in the account year to year. In order to open an HSA in Kansas, individuals and families must be enrolled in a qualified high-deductible health plan. Qualified plans are set by the Internal Revenue Service and the state of Kansas, and individuals should consult their health insurance company for more details.

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What is a Health Savings Account (HSA)?

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