Quick Answer
Health savings accounts (HSAs) are tax-free savings accounts that can help pay for qualified medical expenses.
Detailed Answer
A health savings account (HSA) is a tax-incentivized savings account that can help cover care expenses.
HSAs are triple tax-advantaged, meaning money contributed, invested, and withdrawn are all tax-free as long as you meet specific requirements.
You can only use HSA money tax-free for qualified medical expenses. Any contributions must also stay under a specific yearly limit that varies by age.
HSAs work with high-deductible health plans (HDHPs) to help cover out-of-pocket deductibles. Individuals must have an HDHP before they can open an HSA.
Health savings accounts are a great way to save money for future care needs and to pay Long-Term Care Insurance premiums. If you're interested in learning more, you can read our article about health savings accounts and how to use them to pay for care.
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