| Health Savings Account (HSA) |
An account that offers individuals covered by high-deductible health plans (HDHPs) tax-favored opportunities to save for medical expenses. |
| Highly Compensated Employee (HCE) |
For benefit plan purposes, an employee who receives compensation in the top 20% of all employees, is a 5% owner of the business, and exceeds certain annual compensation levels. |
| Holding Company |
A corporation that has no other function except owning other corporations. |
| Home Equity |
The difference between a home’s current market value and the sum of all claims against it. |
| Home Equity Loan |
A loan in which the lender allows the borrower to use the equity in his or her home as collateral for a line of credit, or revolving credit. The borrower may then obtain cash advances by using a credit card, or checks, up to some predetermined limit. |
| Hope Credit |
A federal tax credit that compensates families for a certain amount of tuition per student per year for the first two years of post-secondary education. |
| Horizontal Equity |
Horizontal equity says that people in the same income groups should be taxed at the same rate. |
| Household Income |
The combined income of all household members from all sources. These sources include wages, commissions, bonuses, Social Security and other retirement benefits, unemployment compensation, disability, interest and dividends. |
| Housing Ratio |
The ratio of a person’s monthly housing payment to his or her total monthly income. |
