What is a Health Savings Account (HSA)? A Health Savings Account (HSA) is a tax favored savings account designed to help individuals pay for qualified medical expenses.
Since its introduction in 2003, the HSA has gained attention for its triple tax advantage: contributions are made with pre tax dollars, earnings grow tax free, and withdrawals are tax free if used for qualifying medical expenses.
To be eligible for an HSA, one must have a high deductible health plan (HDHP) and meet certain income requirements.