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Health Savings Accounts (HSAs) allow you to pay for your current health care expenses and to save for future qualified health expenses on a tax-free basis.
You, your family members, and your employer can make tax-deductible contributions to your account.
You can use your HSA to pay the deductible on your high deductible health plan and any other qualified expenses your health plan doesn’t cover, such as vision and dental fees, and over-the-counter drugs.
For 2012, the maximum amount you can deposit into an HSA is:
- $3,100 for single coverage
- $6,250 for family coverage
If you're age 55 or older, you can deposit additional money (also referred to as “catch-up” contributions) into your HSA account. The maximum annual catch-up contribution you can make is $1,000.
To find out if you qualify, check with your employer’s human resource department.