What is a health savings account?

Health Savings Bank (HSA) is a savings account that helps individuals to save health care costs for themselves, their spouses and addicts. Although there were similar concepts, the Health Savings account is specifically an American concept. For example, in Canada, the savings account is a tax without a tax, which can be used for many purposes rather than for a separate and different health care account. The health savings account can be opened in the bank, credit union, insurance company and other companies that have been approved. The account is owned by an individual that creates it and can be used for current and future health costs of health care and helps create protection against unexpected or high medical accounts. A certain favorable tax authorities are associated with AN of the use of money for purposes other than qualified medical expenditure makes the amount taxable as income and adds a fine tax.

exI will inspire several qualifications for having an account for health savings. One must be an adult and be covered by a highly deductible health plan (HDHP) that is qualified by HSA. One must not have any alternative medical coverage of the first dollar, even if insurance is developed for accident, injury, care for teeth, vision care, disability and long -term care and one can hold any or all of them simultaneously with HSA. In addition, it is not yet possible to enter Medicare and cannot be claimed as dependent on another person's tax return.

There are also several restrictions on the health savings account. Although the bay of the contributions is provided by an individual, an employer of an individual or both, the total contribution is limited annually and must cease one unite. However, the money in the account can be used not only for almost all medical care and care for services and tooth and vision care, but also from over -the -counter drugs, including simple things like Aspirin.

creating an account for sChief healthcares will save some people money for their health care by a significant reduction in their health insurance premiums. Money can be invested and earned income. Tax savings occur in three ways: deductions of taxes for account allowances; Tax -free earnings; And without tax without collection for qualified expenses.