How Does an HSA Work?
An HSA works in conjunction with high deductible health insurance.
Your HSA money can be used to help pay the health insurance deductible and qualified medical expenses not covered by the health insurance, including dental and vision.
Any funds you withdraw for non-qualified medical expenses will be taxed at your income tax rate plus 10% tax penalty if you're under 65.
If you meet the deductible with covered expenses, the health insurance pays remaining covered expenses in accordance with the terms and conditions of your particular plan.
