Health savings accounts have been both trashed or glorified depending upon what financial advisor you work with and whatever broker you have.

Often, just understanding what a product is and how it works is a major part of knowing whether they work well for you. How can you know if an HSA is a product that helps you if you don't know much about them, especially if you get incorrect advice? For your own edification, learning the truth about any financial product is winning over half the battle. Become educated about health savings accounts, and learn how to dispel the ugly rumors.

According to the U.S. Treasury Department, HSAs were created in 2003 so that individuals covered by high-deductible health plans could receive tax-preferred treatment of money saved for medical expenses. Generally, an adult who is covered by a high-deductible health plan (and has no other first-dollar coverage) may establish an HSA.

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