of Health Savings Account
The Health Savings Account (HSA) is a tax-advantaged medical savings account if you have a high deductible health plan. Like an IRA (Individual Retirement Account) or 401(k) retirement accounts, annual contributions are made until you enroll in Medicare. The differences from retirement accounts if the distributions are for qualified medical expenses are:
- The annual contributions are tax-free.
- Interest earned is tax-free.
- The distributions are tax-free.
Another nice advantage is that you are not required to take minimum distributions or take no distributions at all.
If you would like to know if you qualify for an HSA, please call Susan at 630.523.5762. For more helpful tips on becoming a highly profitable business owner, check out Highpoint Advisory Services.