Health Savings Accounts: A Triple Tax Advantage

If you are looking for ways to boost your savings and plan for future medical expenses, consider enrolling in the Value CDH Plan to take advantage of the Health Savings Account (HSA). When you contribute to an HSA, you get triple tax advantages.

Here’s how:

• No taxes on contributions. Any money you contribute to your HSA is exempt from federal income, Social Security and Medicare taxes.
• No taxes on earnings. The more you save, the more your money grows. If you invest your account balances, you will never be taxed on investment earnings.
• No taxes when you use it. As long as you use your HSA to pay for eligible health care expenses, you will never be taxed on those dollars.

When using your HSA to pay for eligible health care expenses, be sure to keep your receipts to verify eligibility and accuracy of payment/ reimbursement, as well as documentation for the IRS (if audited). For a more complete list of eligible expenses, refer to IRS Publication 502, available online at www.irs.gov.