President Donald Trump said in his first speech to a joint session of Congress Tuesday that one of his main principles for replacing the Affordable Care Act is to have health savings accounts play a larger role in helping “Americans purchase their own coverage.”
So what exactly is a health savings account?
HSAs, introduced in 2003, offer you triple tax advantages: First, contributions are tax-deductible. Second, those contributions can be invested and grow tax-free. Third, withdrawals aren’t taxed as long as you use them for qualified medical expenses, such as doctor’s visits, prescription drugs and dental care.
