Health Savings Accounts
The account can be funded by you, by your employer, or partially funded by both of you. Funds deposited in an HSA can reduce the taxes you pay. To be eligible for an HSA, you must be covered by a high-deductible health insurance plan. This is a plan with a $1,250 (or higher) deductible for an individual; $2,500 (or higher) for a family. Other restrictions apply.
Annual deposits, whether from you, your employer or both, can be made up to the amount of the insurance plan deductible. Ceiling amounts change annualy. The accountholder is accountable for how the funds in the HSA are appropriated and could be subject to penalties if HSA funds are withdrawn and used for non-qualified expenditures.