H.S.A.: Possible option for health insurance coverage

Health Savings Accounts (H.S.A.'s) provide an option for health insurance coverage. Once a High Deductible Health Insurance Plan (HDHP) is purchased by an individual, they become eligible to participate in this tax-sheltered savings account, from which amounts can be withdrawn to pay for medical expenses until the deductible is met and the insurance plan begins to pay.

H.S.A.'s are similar to IRA's in that contributions are tax-deductible going in, and tax-free coming out (when used for a qualified medical expense.) There is no income restriction for contributions; however, there are limits on the maximum annual contribution amount. For 2014 details and limits, please visit our H.S.A. page.