As a foreigner living in the U.S., I have no idea what is this and it’s benefits. Would it help me pay less on my health insurance?
Thanks in advance!
In: 7
It’s a tax-free savings account that can only be used for qualified health expenses.
The benefit is that your employer can auto-deposit a portion of your paycheck *before taxes* into that account to use toward medical expenses until you’ve hit your deductible or out of pocket max for the year (or for things that aren’t covered by insurance). So even though it’s income, it doesn’t count towards your income for tax purposes. And it helps you make sure you have funds on hand for out-of-pocket healthcare expenditures.
And in the US, there are a LOT of out of pocket healthcare expenditures.
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