Health Savings Accounts (HSAs) are "IRAs on Steroids"

Written by: PeopleKeep Team
July 9, 2010 at 7:14 AM

health savings accounts iraHealth Savings Accounts (HSAs) combine the benefits of both traditional and Roth 401(k)s and IRAs for medical expenses.

Taxpayers receive a 100% income tax deduction on annual contributions, they may withdraw HSA funds tax-free to reimburse themselves for qualified medical expenses, and they may defer taking such reimbursements indefinitely without penalties.

HSAs are unique - “IRAs on Steroids” - with triple tax advantages:
    1. Tax-deductible contributions, 
    2. Tax-free accumulation of interest and dividends tax-free, and 
    3. Tax-free distributions for qualified medical expenses.
Photo Credit: Flickr, i eated a cookie

Topics: Health Savings Accounts, HSA

Additional Resources

Trying to decide which HRA is best for you? Take our quiz to find out.
Get our guide on how to offer health benefits with a small budget.