Health Savings Account (HSA)

Definition

A health savings account is a tax-advantaged account available to individuals enrolled in a high-deductible health plan. Contributions are tax-deductible, the money grows tax-free, and withdrawals for qualified medical expenses are also tax-free, creating a triple tax advantage. Unused funds roll over year after year and can be invested for long-term growth, making HSAs a powerful tool for both healthcare costs and retirement planning.