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One of the most widely used HSAs is offered by HSA Bank. Its account can be linked to a brokerage account provided by TD Ameritrade (AMTD), where you can invest the money in a wide array of mutual funds, stocks, etc. Other banks, such as Wells Fargo (WFC), also offer HSAs.
Here's how it works. The money you put into your HSA is pre-tax . If your employer contributes to your HSA, that money isn't counted as income so you're not paying taxes on it, either. Interest and investment earnings in your HSA grow tax-deferred like they do in an IRA.
To qualify for an HSA, the taxpayer must be eligible, as per standards set out by the Internal Revenue Service (IRS). An eligible individual is one who has a qualified HDHP, has no other health coverage, is not enrolled in Medicare, and is not dependent on someone else’s tax return.