Health savings accounts often can make sense financially

A: HSAs allow individuals and families with high-deductible health insurance plans to contribute up to $6,450 annually (before taxes) for family coverage and $3,250 for individual coverage. Depending on your health status and that of other members of your family, the amount you save on premiums usually will be larger than your out-of-pocket costs, especially when you factor in the tax savings. Moreover, unused HSA funds ultimately can be used for other purposes, although any nonmedical withdrawals you make before age 65 are subject to a 20% tax.