IMPORTANT DETAILS ABOUT HEALTH SAVINGS ACCOUNTS.

Security – Your high deductible insurance and HSA
protect you against high or unexpected medical bills.

Affordability – You should be able to lower your
health insurance premiums by switching to health
insurance coverage with a higher deductible.

Flexibility – You can use the funds in your health savings account to
pay for current medical expenses, including expenses
that your insurance may not cover, or save the money in
your account for future needs, such as:
• Health insurance or medical expenses if unemployed
• Medical expenses after retirement (before Medicare)
• Out-of-pocket expenses when covered by Medicare
• Long-term care expenses and insurance
Savings – You can save the money in your account for
future medical expenses and grow your account through
investment earnings.
Control – You make all the decisions about:
• How much money to put into the account
• Whether to save the account for future expenses or
pay current medical expenses
• Which medical expenses to pay from the account
• Which company will hold the account
• Whether to invest any of the money in the account
• Which investments to make
Portability – Accounts are completely portable,
meaning you can keep your HSA even if you:
• Change jobs
• Change your medical coverage
• Become unemployed
• Move to another state
• Change your marital status

Ownership – Funds remain in the account from year to
year, just like an IRA. There are no “use it or lose it” rules
for HSAs.

Tax Savings – An HSA provides you triple tax savings:
(1) tax deductions when you contribute to your account;
(2) tax-free earnings through investment; and,
(3) tax-free withdrawals for qualified medical expenses.

What Happens to My HSA When I Die?
If your spouse becomes the owner of the account, your
spouse can use it as if it were their own HSA. If you
are not married, the account will no longer be treated as
an HSA upon your death. The account will pass to your
beneficiary or become part of your estate (and be
subject to any applicable taxes).

Opening Your Health Savings Account
Banks, credit unions, insurance companies and other
financial institutions are permitted to be trustees or
custodians of these accounts. Other financial
institutions that handle IRAs or Archer MSAs are also
automatically qualified to establish HSAs

Need More Information about HSAs?
Treasury’s web site has additional information about
Health Savings Accounts, including answers to
frequently asked questions, related IRS forms and
publications, technical guidance, and links to other
helpful web sites. Treasury’s HSA website can be
found through www.treas.gov (click on “Health Savings
Accounts”) or directly at the following address:
http://www.treas.gov/offices/public-affairs/hsa/.

VIEW OUR HEALTH SAVINGS ACCOUNT VIDEO—HOW HSAs WORK

Learn more:  Self employed and employer sponsored Health Savings Accounts

Compare: Calculate your savings by owning an HSA