An HSA has the following features:
- Contributions to your account may be tax-deductible on your federal income tax return, and in most cases on your state income tax return. (Consult with your personal tax and legal advisors.)
- You can pay for qualified medical expenses with tax-free withdrawals.
- Your employer may offer a payroll deduction option to help you make contributions on a tax-free basis through your employer's cafeteria plan. In addition, your employer may also decide to contribute.
- Unlike Flexible Spending Accounts, your HSA has no "use it or lose it" requirement and also stays with you if you change jobs or retire.
- You will be able to access your HSA using a check, debit card, or at any Provident Community Branch.