What are the benefits of a health savings account?

A health savings account (HSA) is a great way to manage health care costs in the state of Delaware. HSA’s are tax-advantaged savings accounts that allow individuals to set aside pre-tax dollars from their salary to pay for medical expenses. The money contributed to the account is not subjected to federal income tax. Some of the benefits of a health savings account include: • Tax savings: Allowing individuals to contribute to the account with pre-tax dollars helps to reduce taxable income. Contributions may be eligible for a federal income tax deduction, which can save an individual hundreds of dollars a year. • Flexibility: An HSA provides individuals the freedom to use funds to pay for qualified medical expenses. Each plan provides a detailed list of exactly what qualifies as a medical expense. • Savings for future expenses: Funds in the HSA roll over year to year, which allows individuals to save up and use the funds for future medical expenses. • Portability: An HSA is owned by the individual, which means that it follows them wherever they go. The funds are also safe if individuals change employers or health insurance plans. In Delaware, health savings accounts have become increasingly popular due to the money-saving benefits they offer. They are an excellent way for individuals to save for medical expenses and keep more of their money in their pocket.

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What are the benefits of a health savings account?

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