Learn how an HSA helps one family plan and save for health care expenses. Meet Dante and Angie.

Dante's and Angie's Story
Dante and Angie met in college and have been married since their early 20s. In their mid-thirties now, they have two children – Elizabeth is 10 and Sam is 12.

A pretty healthy family, they don’t have a lot of medical expenses aside from eyeglasses for Dante, the occasional cavity and trips to the doctor when the kids get sick or hurt. But, Dante and Angie are pretty sure Sam will need braces next year. And Elizabeth says she has trouble seeing the blackboard at school, so she'll probably need glasses.

Their Health insurance and HSA
Dante and Angie like the idea of having more control over what they spend on health care. So, when Dante's employer started offering a high-deductible health plan and an HSA, they estimated their expenses and decided it was a good option for them.

Here's how the HSA will work for them:

• Their estimated expenses for this year are about $3,000, which included eyeglasses for Dante and Elizabeth, prescriptions, and possible dental fillings and trips to the doctor.
• They contributed $5,950 to the account.
• Assuming their estimate is fairly accurate, about $2,950 will carry over to next year, so they'll have money left over to start saving for Sam's braces.
• They learned by using our calculators that they will save almost $2,000 on taxes.**
• If they meet the investment threshold for the account, they can start investing some of their health care dollars in mutual funds*

** Assumes this family is in the 28% federal tax bracket and lives in state where income tax is 5%. Hypothetical example is for illustrative purposes only. All events, persons and results described herein are entirely fictitious and amounts will vary depending on your unique circumstances. Any resemblance to real events or persons, living or dead, is purely coincidental.  Current rates are variable and may change at any time. Consult a qualified legal, tax or financial advisor for your specific situation.

States can choose to follow the federal tax treatment guidelines for health savings accounts (HSAs) or establish their own. Some states have chosen to tax HSA contributions. Talk to your financial advisor or consult your state department of revenue for more information.