Below are some of the benefits you may enjoy from having an HSA:
- You can claim a deduction for contributing to an HSA plan even if you do not itemize on Sch 1040.
- You can exclude from your gross income, contributions made to the HSA plan by your employer.
- The contributions add up in your account until you use them.
- The interest and earnings on the contributions are tax-free.
- You may take tax-free distributions to pay for qualified medical expenses.
- You may take your HSA with you if you change employers.