Health Savings Account (HSA)?

Question

Is it a pre-tax deduction from your pay check? Also, do you have to use it in a certain period of time?

Answer 1

An HSA is funded similarly to a traditional IRA.  You take a deduction for the amount you contribute.  If your HSA is offered by your employer, it's possible you can contribute with pre-tax dollars, much as you would for a traditional 401k.

To be eligible for an HSA, you must also have a tax qualified high deductible health care policy.  This might also be offered by your employer.

You can use the funds saved in your HSA to purchase eligible health care services, prescriptions, and supplies.  Any amounts not used continue to accumulate in your account and earn interest.

Answer 2

go to www.ustreas.gov or google HSA and you will get the answers you seek, in detail. Yes, it is pre-tax. Not necessarily deducted from your paycheck, because it is a savings account when you have a high deductible insurance policy-- You can spend it on what you think you need medically- and you can be self-employed and still set one up. Look at that website, it has a lot of information. I found it by googling Health Savings Account. Unlike the Flexible Spending Account, which you can lose ( to your employer) if you don't spend it all within the year, you need not spend down your Health Savings Account.  

Answer 3

An HSA can be set up as either a pre-tax or a post-tax deduction...depends on your employer.  An HSA is not the same as a flexible account and does not have to be used within a certain amount of time.  Properly established, an HSA allows you to continually carry over any unused balance from year to year,

Answer 4

It can be either or.  If it's not coming out pre-tax then you'd put it on the front of your 1040 at tax time to deduct it.  It's not a 'use it or lose it plan.'  It's a 'use ir or use it later and if you still have some left over use it for retirment plan.'

They're wonderful plans and you can use it at the grocery store and buy band-aids, over the counter meds, and just about anything else for medical purposes that isn't covered by insurance and save on the taxes.

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