Health Savings Accounts

A health savings account is a tax-favored account for taxpayer enrolled in a “High Deductible Health Plan” allowing tax-deductible funds to be deposited and accumulated into an account that can be used to cover qualified medical expenses. Withdrawals for non-medical expenses are treated very similarly to those in an IRA account in that they may provide tax advantages if taken after retirement age, and they incur penalties if taken earlier.