Having a Health Savings Account (HSA) may benefit you. Some of the benefits are:
- Even if you don't itemize deductions on Form 1040, you may take a tax deduction for contributions you, or someone other than your employer, make to your HSA.
- HSA contributions made by your employer may be excluded from your gross income (including contributions made through a cafeteria plan).
- You do not have to use the contributions in your account from year to year. The funds will remain there until you use them.
- Other earnings or interest on the assets are tax free in the account.
- If you pay for qualified medical expenses with an account distribution; the distribution may be tax free.
- You may take your HSA with you when you change employers or leave the work force because the account is "portable".
For more information on HSAs: