Advantages of Health Savings Accounts (HSA) 

Written By Andrew Elkan, CPA

HSA accounts have the unique distinction of being triple-tax advantaged. What exactly does that mean? 

  • Pre-Tax or Tax-Deductible Contributions 

HSA contributions reduce tax liability. If you contribute via payroll, those contributions are pre-tax contributions. Contributions made otherwise are tax-deductible. 

  • Tax-Free Growth 

Funds in HSA accounts can be invested, and any earnings in this account grow tax-free. This means no taxes on interest, dividends, and capital gains! 

  • Tax-Free Withdrawals for Qualified Medical Expenses 

Qualified withdrawals from these accounts are completely tax-free. 

These characteristics make HSA accounts one of the best vehicles for growth and compounding. 

Andrew Elkan, CPA
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