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.