The Department of the Treasury and the IRS released guidance on new tax benefits made available to holders of Health Savings accounts under the One Big Beautiful Bill Act (OBBB), the IRS said in a Dec. 9 statement.
A Health Savings account (HSA) allows people to set aside their pre-tax money that can later be used to cover medical costs. Since the money grows tax-free, having an HSA can be financially beneficial. When signing up for health insurance, an individual must opt for a high-deductible health plan in order to open an HSA. With high-deductible health plans, a person needs to shell out more in out-of-pocket expenses under the plan before their insurance coverage begins.
