HSA

What are the benefits of an HSA? You may enjoy several benefits from having an HSA. • You can claim a tax deduction for contributions you, or someone other than your employer, make to your HSA even if you do not itemize your deductions on Form 1040. • Contributions to your HSA made by your employer (including contributions made through a cafeteria plan) may be excluded from your gross income. • The contributions remain in your account from year to year until you use them. • The interest or other earnings on the assets in the account are tax free. • Distributions may be tax free if you pay qualified medical expenses. See Qualified medical expenses , later. • An HSA is “portable” so it stays with you if you change employers or leave the work force.