The Health Savings Accounts will change the way millions can save to meet their health care needs. Any individual who is covered by a high-deductible health plan may establish as HSA.Amounts contributed to an HSA belong to individuals and are completely portable.Every year the money not spent would stay in the account and gain interest tax-free, just like an IRA.Unused amounts remain available for later years. Tax-advantaged contributions can be made in three ways:the individual and family members can make tax deductible contributions to the HSA even if the individual does not itemize deductions the individual’s employer can make contributions that are not taxed to either the employer or the employee, and the employers with cafeteria plans can allow employees to contribute untaxed salary through a salary reduction plan.Funds distributed for the HSA are not taxed if they are used to pay qualifying medical expenses. Learn all this and more in the Health Savings Account Handbook.
