What is Health Savings Account (HSA)?
‘Health Savings Account’ or ‘HSA’ refers to a savings account in the US, which enables employees who have enrolled in high deductible health plans (HDHP), to save taxes while investing in health.
As the amount being invested is non-taxable, many employees opt for it for saving taxes as well as the added advantage of being able to roll over the previous year’s savings.
The employees will also be able to spend this money on any health-related expenditure without any tax deductions. The HSA also provides the employee with a credit card for easily paying medical expenses. Unlike FSA, HSAs can be kept in multiple savings accounts. Hence, it is one of the best savings plans available to a US employee.