Will health care reform breathe new life into HSAs?
Abstract: Health Savings Accounts (HSAs) survived the health care overhaul largely intact and may prove to be a valuable tool for reducing health care costs. And because unused HSA balances grow on a tax-deferred basis — similar to an IRA — they can also serve as an additional weapon in one’s estate planning arsenal. This article discusses the basics about HSAs, including their benefits and contribution limits, and mentions two changes to HSAs that take effect in 2011. It also explores the estate planning implications of HSAs.