insurance

What is a health savings account?

 

What is a health savings account?

The Bankrate.com financial term of the day is: "Health Savings Account."

A health savings account allows you to put aside money for one of those rainy days when you're feeling under the weather. It's a savings account with tax advantages. You or your employer put money into the account before taxes have been taken out, and those contributions can be used to cover your share of medical expenses from a health plan with a high deductible and lower premiums. If funds are taken out for other purposes, those withdrawals may be taxable AND subject to a penalty.

A health savings account offers a way to take charge of your health care spending and enjoy tax breaks along the way.

To shop for insurance to fit your needs, visit the Insurance section at Bankrate.com.

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