A health savings account (HSA) is commonly paired with a high deductible plan. Which option best describes this pairing?

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Multiple Choice

A health savings account (HSA) is commonly paired with a high deductible plan. Which option best describes this pairing?

An HSA is designed to work with a high deductible health plan. The idea is to keep premiums lower with a plan that requires you to pay more out of pocket before benefits kick in, while giving you a tax-advantaged way to save for those higher costs. Contributions to an HSA are tax-advantaged, grow tax-free, and withdrawals for qualified medical expenses are tax-free, with funds rolling over year to year and staying with you. The IRS sets minimum deductible and maximum out-of-pocket limits for a plan to qualify as HDHP, which is why this pairing is described as with a high deductible.

An HSA is designed to work with a high deductible health plan. The idea is to keep premiums lower with a plan that requires you to pay more out of pocket before benefits kick in, while giving you a tax-advantaged way to save for those higher costs. Contributions to an HSA are tax-advantaged, grow tax-free, and withdrawals for qualified medical expenses are tax-free, with funds rolling over year to year and staying with you. The IRS sets minimum deductible and maximum out-of-pocket limits for a plan to qualify as HDHP, which is why this pairing is described as with a high deductible.

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