What is an HSA?
A Health Savings Account (HSA) is a tax-advantaged account that you own and can use to pay for qualified medical expenses, including dental and vision services.
Things to Know About HSAs
- Pre-tax contributions*: If you are eligible for an HSA, you – and your employer – can make tax-free contributions (up to the annual limit) to your HSA.
- Tax-free growth: Any investment you or your employer make or interest earned are tax-free.
- Tax-free withdrawals: As long as you are paying for a qualified medical expense, withdrawals from your HSA are tax-free .
- Portability: You take your HSA account with you, even if you change jobs or health plans.
- No "Use It or Lose It": Your HSA funds roll over annually, regardless of the amount.
* Health Savings Accounts (HSA) have tax and legal ramifications. Blue Cross and Blue Shield of Illinois does not provide legal or tax advice, and nothing herein should be construed as legal or tax advice. These materials, and any tax-related statements in them, are not intended or written to be used, and cannot be used or relied on, for the purpose of avoiding tax penalties. Tax-related statements, if any, may have been written in connection with the promotion or marketing of the transaction(s) or matter(s) addressed by these materials. You should seek advice based on your particular circumstances from an independent tax advisor regarding the tax consequences of specific health insurance plans or products.