If you are an adult and are covered by a qualified High Deductible Health Plan (HDHP) you may open and HSA. There are three ways to make contributions:

1. You can make tax deductible contributions to your HSA
2. Your employer can contribute to your HSA and neither you nor your employer are taxed
3. You can deposit from an employer sponsored cafeteria plan through salary reduction.

People age 55 and older are allowed to make catch-up contributions to their HSAs. The catch-up contributions are $900 for 2008, and $1,000 in 2009 and thereafter.

Deposits in the HSA belong to you and are portable. Interest income, and investment earnings grow tax-free.

You are not taxed on distributions from the HSA as long as it is for qualified medical expenses.

We are insurance agents not a CPAs. Every effort has been made to make sure that information in this website is accurate in regards to Health Savings Accounts and Tax Savings.  Please consult with your tax professional, the IRS, and your State revenue department.