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Article Date:
February 2011


Word Count:
909

 

 

How Tax-Favored Health Savings Accounts Work in a Nutshell


Did you answer “yes” to the question posed in the article titled “Should You Have a Health Savings Account?”

 

If so, would you like to know how the health savings account (HSA) works?

 

If your answer is yes, that’s what you will learn in this article.

 

Proprietorship and S Corporation

 

Whether you operate your business as a proprietorship or an S corporation, the first step to your HSA is tax-deductible health insurance with a high deductible.

 

Once you procure your high-deductible health insurance, you launch a tax-deductible, tax-deferred, and tax-favored investment account.

 

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