Think of a Health Savings Account as a Medical IRA.  The similarities include:

  • Your deposits are tax-free and your money grows tax-free.
  • You decide how to invest and grow your money.
  • You can withdraw funds anytime for qualified medical expenses tax-free.
  • When you reach age 65, you can withdraw your money without penalty and use it for whatever you want (taxes will still apply if the expense is not a qualified medical expense).

Who’s eligible?

To be eligible for a Health Savings Account, you must:

  • First enroll in a high-deductible health plan
  • Not be covered by an other non-HDHP benefit plan

You are not eligible for a Health Savings Account if:

  • You are claimed as a dependent on someone else’s taxes
  • If you are covered by any other health plans that are not considered HDHPs, including Medicare and Flexible Spending Accounts