A Health Savings Account is a tax-favored account established exclusively to pay certain medical expenses of the account owner, spouse, and dependents.
Health insurance coverage must be provided under a qualifying high-deductible health plan. Qualified contributions by the account owner are deductible from gross income, and growth inside the account is not taxed. Distributions to pay for qualified medical expenses are received income tax-free. Funds not used during one year can be held over and used to pay qualified medical expenses in a later year even if no further contributions are permitted.
If you do not have an HSA now, or you do not know about HSAs, the single most important thing you can do to improve your employee benefits program, and lower your costs is to fill out the Protection Savings Form Above or call GDI right now and ask us to help you put your plan together!