What is a Health Savings Account (HSA)?
A Health Savings Account (HSA) is a tax-advantaged savings account designed to help individuals with high-deductible health plans (HDHPs) save for qualified medical expenses. HSAs offer triple tax benefits and can be a powerful tool for both healthcare and long-term financial planning.
Key Features:
- Triple Tax Advantage: Contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are also tax-free.
- Flexible Use: Funds can be used for a wide range of qualified healthcare expenses, including doctor visits, prescriptions, dental, vision, and more.
- Rollover Benefits: Unused funds roll over year to year—there’s no “use it or lose it” rule.
- Portability: Your HSA stays with you, even if you change jobs or health plans.
- Investment Options: With Imagine, you can invest your HSA funds in a variety of assets, potentially growing your savings for future healthcare needs or retirement.
- Contribution Limits: Annual contribution limits apply and are set by the IRS.
Who Should Consider an HSA?
- Individuals and families with high-deductible health plans (HDHPs).
- Those looking to save on healthcare costs while reducing taxable income.
- Anyone interested in building a tax-advantaged fund for future medical or retirement expenses.
