The Health Savings Accounts screen allows you to enter the balances and contributions related to your HSA. There is an option to enter an account for each spouse or partner.
Key Concepts:
- HSA accounts refer to accounts available to those in a workplace with a high-deductible health plans (HDHPs) to save for qualified medical expenses.
- HSAs can be funded with pre-tax dollars, grow tax free, and used without paying income tax if paying for qualified medical expenses like medical, dental, and vision care and prescription drugs.
Tips:
- Note that non-qualified withdrawals are taxed as ordinary income. There is no 20% penalty imposed if you withdraw from the HSA before age 59. So you must be aware of those rules.
- If you create withdrawals, the withdrawals will show as income in the Income report (unqualified withdrawals will be taxed). If you plan to spend that income, you would need to create a Special Expense. Otherwise the income is just returned to your regular assets. If these are qualified withdrawals, you can assume that the tax-free withdrawal is helping toward Medicare Part B, or you can create your own qualified health-related Special Expense to use this withdrawal.