Question: How does HSA insurance work? what are the advantages and disadvantages?
Answer: A health savings account (HSA) lets you save money for future health-related expenses. It's essentially like an IRA savings account for your health. And after you turn 65, it's even more similar to an IRA, because you can take out money for non-health expenses. You can use money from your HSA to pay for all tax-deductible medical expenses, from contact lenses to acupuncture. The money you put in the HSA is tax-deductible. Also, the money you withdraw isn't taxed by the IRS, as long as you spend it on approved, health-related stuff. The HSA's interest income isn't federally taxed, either. You can't use money from your HSA to pay for your health insurance premium -- unless you're unemployed. There are limits to how much you can save. For 2015, you can sock away $3,3500 if you are an individual or $6,650 for a family.