What are the advantages of an HSA?

What are the advantages of an HSA?

There are many financial advantages to owning an HSA, including:

Employer contributions and employee pretax contributions via a cafeteria plan are not taxable income
Post-tax contributions are tax deductible even if you do not itemize deductions on Form 1040
You may make tax-free withdrawals from your HSA for eligible medical expenses not covered by your plan
The interest or other earnings on the HSA funds accumulate tax free
If, in the future, you are not covered by an HDHP you may still make tax-free withdrawals from your account for eligible medical expenses but you can no longer contribute to the HSA
If you become disabled or reach age 65, withdrawals can be made for non-medical reasons without penalty, but amounts must be reported as taxable income