(ARA) – If you are doing last-minute tax planning, check to see if you are eligible for an attractive but sometimes overlooked deduction that can help you save money. Taxpayers who are covered by high-deductible health insurance plans, either individually or through their employers, can open bank accounts called health savings accounts (HSAs).

One of the best features of an HSA is that individuals and families can make tax-deductible contributions to their accounts – with limits set by the IRS – to save and pay for qualified medical, dental and vision care expenses. Individuals can open and make contributions to HSAs for 2010 until April 18, 2011, the tax-filing deadline. HSA contributions are tax-deductible up to:

* $3,050, if you had individual health coverage, or

* $6,150, if you had family coverage

“Health savings accounts are a smart way to save and pay for your health care needs,” says Chad Wilkins, CEO of OptumHealth Financial Services. “Any interest you earn or money you withdraw for qualified medical expenses is not taxed. There’s also no ‘use it or lose it’ rule with an HSA, so any money you don’t use this year can be saved for the next – or even years from now.”

If you’re older than 55 but not yet entitled to Medicare, an extra tax advantage allows you to make an additional deductible contribution of $1,000. For example, if you have individual coverage, you can contribute up to $4,050 (the $3,050 contribution limit plus the extra contribution of $1,000).

Medical expenses do not need to be itemized on your tax return to make contributions to an HSA. However, an HSA may only be used to pay for qualified medical expenses, so any receipts should be saved as proof if questioned by the IRS.

Of course, you don’t have to wait until April 18 to contribute to an HSA. The sooner you contribute, the more earnings you can build up on a tax-advantaged basis. The same contribution guidelines apply if you are covered by high-deductible health insurance in 2011, so you can get started on your 2011 tax planning, too.

Ask your employer or your health insurance agent if you are eligible to open an HSA.

If you do contribute to an HSA for 2010, be sure to fill out and attach IRS Form 8889 to your federal tax return. Remember that some states tax these accounts differently, so check with your state’s department of revenue or your tax advisor for details about your state’s tax laws.

For more information on HSAs or to open an account, visit OptumHealthBank.com.