A Health Savings Account (HSA) is a special, tax-advantaged account that you can use to save and pay for medical expenses. It’s designed to work with a high-deductible health plan (HDHP) and offers triple tax benefits:
💸 Triple Tax Advantage:
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Contributions are tax-free
Money goes in before taxes, lowering your taxable income. -
Growth is tax-free
Funds grow tax-free through interest or investment earnings. -
Withdrawals are tax-free
As long as the money is used for qualified medical expenses, you pay no taxes on withdrawals.
🧠 What Makes HSAs Unique?
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Funds never expire—the money rolls over year to year
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You can invest your balance, like a retirement account
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HSAs are owned by you, not your employer
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Once you turn 65, you can use HSA funds for any purpose (though non-medical withdrawals are taxable)
✅ Key Requirement:
To contribute to an HSA, you must be enrolled in an HSA-qualified high-deductible health plan and meet other eligibility rules (more on that in the next FAQ!).