Of all the different types of health insurance around many people don't know what a health savings account is. If you need insurance then this is something that you really need more information about. Basically it is a type of saving plan that goes with your insurance. It can help you to be able to afford you out of pocket medical expenses. There are restrictions to who can use this and ways to qualify. It is worth taking a little time to find out.

The start to getting a Health Saving Account begins with your insurance. You have to already be using or go sign up for a health insurance plan that has a high deductible. There are different types and company's that have this plan. A lot of people use it because it is really the plan with the lowest monthly premium. That is the way it works. If you have large amount that you have to pay first before your insurance starts to pay for your health care, that is a high deductible. It is actually anything that is over $1,100 for one person. That means that your doctor or hospital bills will have to go past that amount in cost for the year before your insurance will start to pay anything. It is popular because it makes it easier for people who can't afford a high monthly premium payment to have insurance.

When you are all set up with your health plan you can then get hooked up with the HSA. People get all worked up about this way of saving because you can save a lot. If you have money taken directly from your regular paycheck and have it put into this account, you never pay taxes on it. That is really incredible. You don't pay taxes and you also earn interest. You can put money in it from other places too.

If you want to use your IRA to put some money in you can do that. If you are wondering what happens to that money if you never need it for health care, you will get it eventually. When you turn 65 you can take the money out. It can be for whatever you want to use it for. And it is still tax free. You don't have to pay any taxes when you take it out. Now remember the whole time that it is in there it is earning interest and every year it rolls over and starts earning again.

The money from your HSA can be used for several different things when you need it. You can pay your deductible out of it when you need care. You can use it for different hospital costs. That is something that varies with each company so you will need to check that beforehand. Remember too there are different rules about using your IRA and what happens when you change plan. That's another thing you will need to check with your specific company to get the details about.