Combining a Health Savings Account and an HSA-eligible health insurance plan can be a smart way to save and pay for health care. Fund your Health Savings Account with pre-tax dollars through a payroll deduction and reduce your taxable income.

You pay no taxes for withdrawals for qualified expenses and no taxes on dividends earned. Use the funds in your account to pay for current medical expenses, including those that your insurance may not cover, or save the money in your account for future needs. What you don’t spend earns interest and grows from year to year. The money in your HSA account belongs to you and will remain available to you even if you change jobs, change insurance coverage, or become unemployed. Consult your tax professional for additional tax information.