What are the Benefits of an HSA?

One of the main benefits of a Health Savings Account (HSA) is that you can deduct contributions from your taxable income. If your employer also contributes to your HSA, those contributions can be excluded from your gross income, further lowering your taxable income. Additionally, any payments made from your HSA for qualified medical expenses are tax-free. Another advantage is that there are no annual deadlines for using the funds; they can accumulate from year to year and earn tax-free interest. This makes HSAs a valuable long-term savings tool for managing healthcare costs. With these benefits, an HSA can help you save money while allowing you to have resources available for future medical expenses.