A Health Savings Account (HSA) is a great way for you to save money for your healthcare costs. HSAs allow for tax-deductible contributions and for tax-free distributions if distributed amounts are used for qualified medical expenses. HSAs can be used for qualified medical expenses not only for yourself but for your spouse and tax dependents as well. Contributions to an HSA can be made by an individual, your employer, or both. This is a variable rate, interest-bearing checking account with a $25 annual maintenance fee.
2010 & 2011 HSA Contribution Limits
Single $3,050 Family $6,150
For individuals age 55 and older, an additional $1,000 “catch up” contribution is allowed.