general agency company > life & employee benefits > coverages > health savings accounts
Health Savings Accounts
A Health Savings Account (HSA), is a tax-advantaged medical savings account available to taxpayers who are enrolled in a qualified High Deductible Health Plan (HDHP). The funds contributed to the account are not subject to federal income tax at the time of deposit and the funds roll over and accumulate year over year if not spent. HSAs are owned by the individual and move with an employee if there is a change in employment. Funds may be used to pay for qualified medical expenses at any time without federal tax liability. Withdrawals for non-medical expenses are treated very similarly to those in an IRA in that they may provide tax advantages if taken after retirement age, and they incur penalties if taken earlier. These accounts are a component of consumer driven health care.
If you need more information, please look at our HSA faq flyer.