Merritt Personal Lines Manual: What are the benefits of an HSA?

You may enjoy several benefits from having an HSA.

• You can claim a tax deduction for contributions you, or someone other than your employer, make to your HSA even if you do not itemize your deductions on Form 1040.
• Contributions to your HSA made by your employer (including contributions made through a cafeteria plan) may be excluded from your gross income.
• The contributions remain in your account from year to year until you use them.
• The interest or other earnings on the assets in the account are tax free.
• Distributions may be tax free if you pay qualified medical expenses. See Qualified medical expenses, later.
• An HSA is "portable" so it stays with you if you change employers or leave the work force.