Frequently Asked Questions

How does state tax treatment of HSAs differ from federal tax treatment?

HSAs (and the legislation that created them) are federal. As a federal program, each state decides whether to: comply with the federal guidelines, or; establish their own state guidelines regarding the tax treatment of HSAs. As a result, some income that may be tax-free at the federal level may not be tax-free at the state level. Check with your accountant or tax professional for details.

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