A Health Savings Account (HSA) is a special tax-advantaged account available to people enrolled in a high-deductible health plan (HDHP). You can use it to pay for qualified medical expenses with tax-free dollars. In 2025, you can contribute up to $4,300 if you have self-only coverage, or up to $8,550 for family coverage, plus an extra $1,000 if you’re age 55 or older.
HSAs offer a triple-tax benefit: your contributions are tax-deductible, the money grows tax-free, and withdrawals for qualified medical expenses are tax-free. You own the account, the funds roll over year to year, and the money stays with you even if you change jobs or retire.