What is a Health Savings Account (HSA) and how does it work?

The video discusses Health Savings Accounts (HSAs), highlighting their tax advantages, eligibility criteria, and potential for retirement savings. It also addresses the challenges associated with high deductible health plans, including fees and financial impacts, as well as the potential negative effects on healthcare access for low-income individuals. The video emphasizes the importance of understanding the fees and yields of HSAs and considering the impact of high deductibles on healthcare affordability.

What are the three main tax benefits of Health Savings Accounts (HSAs)?

• Tax-free deposits, tax-free withdrawals, and tax-free contributions

• Tax-free growth, tax-free withdrawals, and tax-free loans

• Tax-free deposits, tax-free growth, and tax-free withdrawals for qualified expenses

• Tax-free contributions, tax-free loans, and tax-free growth

Who is eligible to open a Health Savings Account (HSA)?

• Individuals enrolled in a qualifying high deductible health plan

• Anyone with a health insurance plan

• Anyone over the age of 18

• Only employees of financial services companies

What happens to an HSA when the account holder passes away?

• It is donated to a healthcare charity

• It is divided among the account holder's children

• It transfers to the spouse or becomes taxable if inherited by others

• It is automatically closed

What is a common issue with HSAs as reported by the Consumer Financial Protection Bureau?

• They have no associated fees

• They are only available to high-income individuals

• They offer high returns on investments

• They often come with high fees that reduce available funds

How might high deductible health plans affect low-income employees?

• They encourage more frequent doctor visits

• They discourage routine care due to high out-of-pocket costs

• They provide free healthcare services

• They eliminate the need for emergency room visits