Tax Benefits of Health Savings Accounts
- Your HSA contributions are tax deductible.
- HSA Contributions made by your employer are excluded from your income.
- HSA earnings are tax deferred.
- If used for qualified medical expenses, HSA assets are tax-free.
- HSA assets become the property of a named beneficiary, or of the HSA
owner's estate upon an HSA owner's death. A spouse beneficiary may
treat the HSA as his or her own, while non-spouse beneficiaries must treat
inherited HSA assets as ordinary taxable income.