Health Savings Account (HSA)

A health savings account (HSA) is a tax-advantaged savings account tied to a high deductible health plan (HDHP) that allows individuals to set aside pre-tax money to pay for qualified medical expenses, such as deductibles, copayments, and prescriptions. HSA funds can be invested, roll over year-to-year, and remain the property of the account holder even if job changes or retirement occur. Contributions, earnings, and qualified withdrawals from an HSA are generally tax-free, making it a unique way to reduce out-of-pocket healthcare costs and save for future medical needs.