An HSA contribution is tax-deductible.
Contributions to plans sponsored by employers are deducted from paychecks.
When you prepare your annual taxes, you can take advantage of the deductions if you are self-employed.
As long as the money is used to pay for qualified medical expenses, withdrawals from an HSA are tax-free.
These costs may include dental and vision care costs that are not covered by all health insurance policies.
The majority of HSAs issue debit cards that can be used to pay for eligible expenses, such as prescription drugs. You can pay over the phone with your debit card if you wait for a bill to arrive in the mail.
Don’t worry if you use it or lose it: Any money in your account at the end of the year can be used to pay for qualified medical expenses in the future. Balances at the end of the year are carried over indefinitely.
