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How is a health savings account (HSA) funded?

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Some employers deposit all or a portion of your deductible into an HSA. You don't have to pay taxes on it. Other employers simply set up the account, and you must make deposits to it.

Even if your employer contributes to your HSA account, you may put in extra funds on a tax-free basis, but there is a limit to how much can be contributed. If you are 55 or older, you can put in extra money.

SOURCES:

Forbes.com: "Comparing Health Savings And Flexible Spending Accounts."

Kiplinger's Personal Finance, April 2013: "FAQs About Health Savings Accounts."

Creighton.edu: "FSAs, HSAs and Limited Purpose FSAs -- What's Right For You?"

American Medical Association: "Health Savings Accounts."

Healthcare.gov: "Flexible Spending Account."

Reviewed by Sarah Goodell on February 16, 2018

SOURCES:

Forbes.com: "Comparing Health Savings And Flexible Spending Accounts."

Kiplinger's Personal Finance, April 2013: "FAQs About Health Savings Accounts."

Creighton.edu: "FSAs, HSAs and Limited Purpose FSAs -- What's Right For You?"

American Medical Association: "Health Savings Accounts."

Healthcare.gov: "Flexible Spending Account."

Reviewed by Sarah Goodell on February 16, 2018

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What are the tax advantages of a health savings account (HSA)?

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