- Federal tax advantages:
- The money you put into an HSA is tax deductible and can be claimed on your taxes.
- The money grows tax free.
The money you take out to pay for qualified medical expenses is tax free.
- Funds do not expire. Your HSA money never expires and is not subject to "use-it-or-lose-it rules”. It automatically stays in your account even if you change jobs or retire.
- Possible use for family members. HSA funds may be used to pay for qualified medical expenses for spouses and dependents. This applies even if they are not covered under the individual’s insurance plan.