HSA (Health Savings Account)
A tax-advantaged account for medical expenses, available with high-deductible health plans.
Full definition
A Health Savings Account (HSA) lets you save pre-tax money for qualified medical expenses. HSAs are only available if you have a High-Deductible Health Plan (HDHP). Contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are tax-free — a triple tax advantage. Unused funds roll over year to year and can be invested. In 2026, individuals can contribute up to $4,300; families up to $8,550.
Real-world example
You contribute $4,300 to an HSA. That lowers your taxable income by $4,300. You invest it; it grows to $4,800 by year-end. You spend $1,200 on dental work — all tax-free.
Try the related calculator
See how hsa (health savings account) affects your specific situation.
Use the calculator →Quick summary
A tax-advantaged account for medical expenses, available with high-deductible health plans.
Related terms
- Health insurance deductible
The amount you pay for health care each year before insurance starts paying.