The Background on HSAs
Congress authorized the creation of health savings accounts (HSAs) in 2003. An HSA is a tax-favored medical savings account available to taxpayers. HSAs enable taxpayers to pay for current medical expenses and save for future qualified medical expenses on a tax-free basis.
HSAs are owned by individuals, but contributions may be made by an employer or any other person. Amounts in an HSA may be accumulated over the years or distributed on a tax-free basis to pay for or reimburse qualified medical expenses.
As the number of HSAs continues to increase, having this training available for volunteers will be a benefit to the program.
HSAs operate in a similar manner as Individual Retirement Accounts (IRAs). Qualified taxpayers can make contributions to a designated account that may be deductible. In addition there are rules related to distributions.