Health Savings Accounts

A health savings account is a portable, self-funded and self-controlled savings account used to pay for personal routine health care expenses.  An HSA rolls over every year for health care expenses and/or retirement.  Unlike flexible spending programs which are tied to a specific employer, HSAs and Individual Retirement Accounts (IRA) have many comparable qualities such as portability and self-funding, meaning that if a person changes jobs, the fund follows because the individual employee is the owner of the account.  Much like an IRA, HSAs allow “catch-up contributions,” which are additional funds deposited into fund above the amount normally allowed.  While HSAs can be used by a person of any age, catch-up contributions can be made only by participants age 55 and older.

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