A Health Savings Account (HSA) is a tax-advantaged account allowing employees with high-deductible health plans to save for medical expenses, with contributions from both employees and employers.
- What is a Health Savings Account (HSA)?
Answer: It is a tax-advantaged account for medical expenses with high-deductible plans. - Who can contribute to an HSA?
Answer: Both employees and employers can contribute. - What is the 2025 contribution limit?
Answer: As of July 11, 2025, it is approximately $4,150 for individuals (subject to IRS updates). - What happens to unused funds?
Answer: Funds roll over and can be invested for future use. - What are the tax benefits?
Answer: Contributions, growth, and withdrawals for medical costs are tax-free.
