Health Savings Accounts (HSA) are apt more well loved as the cost of health insurance continues to increase.

An HSA is a special bank account that is set up in conjuctions with the enrollment in a high deductible health plot (HDHP).

You, your employee or an eligible family member can make tax free contributions to the HSA. The HSA will earn interest that is not taxed and any withdrawals to pay for qualified medical expenses are also not taxed. Any funds left over in the account at the end of each year is carried over to the next year.

The role to an HSA each year is limited to the amount of the HDHP deductible or $2,650 for individuals and $5,250 for families, whichever is less. You or your employee may not contribute to an HSA once you or your eomployee becomes eligible for and enrolled in Medicare. Your or your eomployee can make withdrawals to pay for qualified medical expenses by try out or debit card just as you would with any other bank account.