Health Savings Account (HSA)

A tax-advantaged account for medical expenses, available to people with high-deductible health plans.

A Health Savings Account lets eligible individuals set aside pre-tax income to pay for qualified medical expenses, with unused funds rolling over and growing year after year rather than expiring. Because contributions, growth, and qualified withdrawals are all tax-free, it's often described as triple tax-advantaged.

He contributed the maximum to his Health Savings Account (HSA) every year, treating it like a second retirement account for medical costs.