Health Savings Account

• You can take a tax deduction for a contribution to a health savings account if you also have a high deductible health plan in place. Combining the HDHP and HSA provides a double savings, since the high deductible plans tend to be much less expensive than traditional plans. At the same time, the deduction for the HSA contribution lowers your taxable income and therefore your tax liability as well. If you plan to open an HSA, you should first check with your human resources department or insurance broker to ensure that your health plan qualifies.