Article Date:
February 2011

Word Count:



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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