A Health Savings Account (HSA) is an account that allows you to save money for medical expenses on a tax-advantaged basis. Funds are deposited into the HSA on a tax-free or tax-deductible basis, funds grow on a tax-deferred basis, and remain tax-free when used for eligible medical expenses. It is the only existing account that provides a triple tax benefit where funds, when used for eligible expenses, are never taxed. In order to contribute to an HSA, the HSA must be combined with an HSA-compatible health plan (often referred to as a high deductible health plan or HDHP).
