Health Plans
What is HSA (Health Savings Account)?
Definition
An HSA is a tax-advantaged savings account tied to a High-Deductible Health Plan. Contributions are deductible, growth is tax-free, and withdrawals for qualified medical expenses are tax-free. Unused funds roll over indefinitely and belong to the account holder, not the employer.
Real-World Example
A software engineer maxes her HSA at $4,300 in 2026, invests the balance in a low-cost index fund and lets it compound. Twenty years later she uses the account to pay Medicare Part B premiums tax-free.
Why It Matters
HSAs are the only account that is triple tax-advantaged. Financial planners frequently rank them ahead of a 401(k) match for anyone eligible under an HDHP.
Frequently Asked Questions
What happens to my HSA if I change jobs?
It stays with you. The HSA is owned by the individual, not the employer.