When it comes to their value as tax-deferred savings instruments, health savings accounts are a triple threat.
A creation of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, HSAs allow participants in qualifying employer-sponsored health care plans the chance to defer compensation to pay for qualifying out-of-pocket health care expenses.
Like a 401(k) contribution, those deferrals into HSAs reduce participants' taxable income. Assets in the accounts grow tax-free over time.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
