Health Savings Account: Guide To Triple Tax-Advantaged Account 


Getting sick is not fun. Worse, the expensive medical bills and damage to our liquid net worth. Fortunately, the IRS has several tax breaks for health care.

Out of all the tax-advantaged accounts, maxing out the health savings account (HSA) is one of the best tax-saving strategies. Let us explore why investing in the HSA is better than even a 401(k).

What Is a Health Savings Account?


A health savings account (HSA) is an account that can help individuals and families save money for qualified health care expenses on a pre-tax basis. Everyone does not have access to Health savings accounts.

To qualify for an account, you must be enrolled in a high deductible health plan (HDHP). And not all high deductible health plans are health savings account HSA qualified. It has to be defined by the Internal Revenue Service to be an HDHP.

What Qualifies as a High Deductible Health Plan?


For a family to be covered, the high deductible health plan must have an annual deductible of $2,800 or more, and annual out-of-pocket expenses must not exceed $13,800. As for individual plans, this includes co-payments and deductibles but not insurance premiums.

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