A Health Savings Account (HAS) can reduce your health insurance premiums by as much as 70%, while you set aside funds to pay for current and future medical expenses. HSA contributions are tax deductible (subject to limitations), and withdrawals are tax-free when used for qualifying medical expenses.
If you want to take control of your health care costs—avoiding high premiums and complicated health plans—then an HSA could be the right plan for you. These are just some of the benefits of a self-directed HSA:
Lower premium costs than those for low-deductible health plans— by enrolling in mandatory high deductible health plans you potentially reduce your monthly premiums, in some cases by 70%.
Contributions are tax deductible (subject to limitations).
Contributions can be invested (similar to a Self Directed IRA)—funds can be invested in the same way as a Self Directed IRA, with the possibility of accumulating tax-free or tax-deferred profits in investments that you know best.
Distributions are tax-free when money is withdrawn to pay for qualified medical expenses.
Contributions can be carried over from one tax year to the next—unlike the “use it or lose it” requirement imposed upon flexible spending accounts.