In most states, HSA contributions are tax deductible at both the federal and state levels. However, a few states do not follow federal tax treatment for HSAs. In these states, your HSA contributions may be subject to state income tax, and your account could be treated like a standard taxable investment account.
Be sure to review your state’s specific tax laws and consult with a qualified tax professional for guidance on your individual situation. This information is not intended to serve as tax or investment advice.
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