Defined Contribution Plans | Section 125 Cafeteria Plans | COBRA | HRA | HSA

Health Savings Accounts:

A Health Savings Account (HSA) is a special bank account for both employee and employer contributions. HSAs provide funds that are used to pay for eligible medical expenses. Combined with an inexpensive, high deductible health plan, HSAs offer a tax-free method of regaining control of routine medical costs. Consumers are given financial incentive to spend their dollars wisely, because unspent dollars accumulate tax-free in their own personal accounts. Funds can also be invested in stocks, bonds, and mutual funds to offer a wide range of tax-free investment options. If unused, the funds in an HSA can also serve as an additional source of retirement income.

Features of Health Savings Accounts:

• All contributions are tax-exempt
• Qualified distributions are never taxed
• Earnings are tax-exempt
• Unused funds always roll over
• Your healthcare money is portable
• You get more choice over how to use your healthcare dollars
• You can easily save for future medical expenses, or for retirement