Understanding Savings Accounts:

Everything you need to know about HSAs

A Health Savings Account – or HSA – is a savings account used to put pre-tax dollars aside specifically for your out-of-pocket health expenses.

Like a regular savings account, your HSA earns interest and is yours to keep if you leave your employer. HSA dollars don’t expire each year, like an FSA, but can be carried over year after year…forever. You can only have an HSA if you are enrolled in a High Deductible Health Plan, or HDHP. These types of plans usually cost less out of each paycheck, but have higher dollar amounts you need to pay before your health insurance begins to pick up the tab. Finally, if other family members are covered on your medical plan, your HSA can be used to pay for their healthcare expenses as well.