Frequently asked questions about HSAs
   What are they?  They are 401(k)-type investment accounts that, when used to pay medical expenses, are tax-free.  Who is eligible?  Anyone who is covered by a high-deductible health plan (at least $1,000 for individuals and $2,000 per family), is not eligible for Medicare, and can't be claimed as a dependent on someone else's tax return.
   
   How much can I set aside?
   For 2004, individuals can invest an amount equal to their deductible or $2,600, whichever is less. For families, the maximum contribution is the lesser of the deductible or $5,150. If you will turn 55 before the end of the year, you can contribute an extra $500. There is no cumulative cap on contributions.
   
   Can my employer contribute to my HSA?
   Yes, but it is not required and annual contribution limits still apply.What happens to any unspent money?  Funds can be rolled over year to year and job to job, accruing interest along the way.
   
   Can I use my HSA to pay expenses not related to health care?
   Yes, but if you do so before age 65, you must pay income tax and a penalty.  If you are 65, there is no penalty, but you pay income tax.
   
   Who wins
    * Young, healthy, single people: Lower health costs translate into bigger savings accounts.
    * Health insurance companies: Coverage doesn't kick in until after higher deductibles are met.
    * Employers: High-deductible plans equal lower premiums.
   * Alternative medicine users and makers: Tax-free funds can be used for doctor-prescribed dietary   supplements.
    * The uninsured: Price cuts may lure some who can't afford traditional plans.
   
   Who loses
    * Diabetics and others with chronic conditions: Frequent out-of-pocket expenses make saving difficult.
    * Families with young children: If deductible not waived for preventive care, co-pay plans may be cheaper.
    * People in lower income brackets: They have less money to set aside and get little to no tax benefit.