A health savings account (hsa) is a tax-exempt trust or custodial account you set up with a qualified hsa trustee to pay or reimburse certain medical expenses you incur.
This year we decided not to pay our medical bills from our HSA funds. This is where the magic of an HSA comes into play.
Step 1 Determine if your employer offers an HSA option and enroll if available.
Step 2 Fund your HSA account. The maximum annual contribution for 2021 is $7,200 and will likely increase slightly every year or two.
Step 4 Save your receipts for qualified medical expenses. We save all of our receipts in a simple Google Document that can be accessed through Drive.