WHAT IS A HEALTH SAVINGS ACCOUNT (HSA)?
A health savings account (HSA) is an IRA-like account funded with pretax dollars that grow tax-deferred. The HSA assets may serve a dual purpose:

• tax-free and penalty-free distributions can be taken to pay for medical expenses, and
• penalty-free (but not tax-free) distributions can be taken for any reason starting at age 65. (HSA assets not used for medical expenses become retirement assets)

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WHO IS ELIGIBLE FOR HEALTH SAVINGS ACCOUNTS?
Individuals who:

• Are not covered by any other non-HDHP health plan, such as a spouse’s plan, that provides any benefits covered by your HDHP plan.
• Are not enrolled in Medicare.
• Do not receive health benefits under TRICARE.
• Have not received Veterans Administration (VA) benefits within the past three months.
• Are not claimed as a dependent on another person’s tax return.
• Are not covered by a general purpose health care flexible spending account (FSA) or health reimbursement account (HRA). Alternative plan designs, such as a limited-purpose FSA or HRA, might be permitted.