Hello NewBie Need some advice.

[admin]

Hello Experts

As the subject say I am very new to HSA and I must confess that have not done much research on it. But i want to save money if I can.

Well, I have a couple of questions, kindly let me know.

1. Is the HSA account good for my Insurance premium? i.e. can i pay my Medical Insurance premium using this HSA account?

2. I understand that I can carry forward my balance to the next years, but lets say ( in some scenario) Can I withdraw the money from this account. I understand I need to pay tax for this, if I can withdraw money.

Many Thanks
ShortDuck

[admin]

Question 1: Unfortunately, you cannot pay your health insurance premium from your HSA. However, when you purchase long term care insurance, you can pay for those premiums with your HSA dollars.

Question 2: If you withdraw any money from your HSA that is not a qualified medical expense then yes you will be taxed on those dollars. If you withdraw any money from your HSA for any eligible medical expense, then you will not have to pay taxes on those dollars.

Hope this helps.