A Health Savings Account (HSA) is a special savings account you can use for health care expenses.

It offers triple tax advantages: contributions are made pre-tax (or tax-deductible), the money in the account grows tax-free, and withdrawals are tax-free when used for qualified medical costs. Think of an HSA like a 401(k) for healthcare – it helps you save for medical expenses now and in the future.

HSAs are paired with High Deductible Health Plans (HDHPs), which have higher deductibles but often lower monthly premiums. Because HSAs rollover, HDHPs often have lower monthly premiums compared to traditional health plans, and contributions, earnings, and withdrawals to an HSA are tax-free, HSAs are a powerful way to save for future healthcare expenses.