A health savings account, or HSA, is an individual savings account to help individuals cover out-of-pocket medical expenses.
HSAs allow you to save pre-tax dollars for your healthcare costs. The amount contributed to your HSA is taken from your pay before payroll taxes are calculated, which can help you pay less in taxes.
HSAs are fully portable, regardless of your employer. If you leave for another organization, your HSA remains intact, with all the money you’ve contributed. You may always withdraw from it for qualified eligible expenses, and you may continue to contribute to it as long as you’re covered under a high deductible health plan (HDHP).
As an individually owned account, the funds in your HSA do not forfeit at the end of the plan year and always belong to you. HSA optimizers may build their funds year over year to ensure they have money for medical expenses when they need them. Uninvested funds are FDIC-insured and gain interest over time.
Once your balance reaches a specified level, you may invest* HSA funds, like you would in a retirement account. That provides you with the potential for your money to grow.
*Investments in securities through HSA investments are: Not FDIC Insured • May Lose Value • No Bank Guarantee