Health Savings Accounts (HSAs) are a powerful way to save money on healthcare expenses—both now and in the future. If you’re enrolled in a high-deductible health plan (HDHP), an HSA can help you take control of your healthcare spending while offering unique tax advantages.

What Is an HSA?

An HSA is a tax-advantaged savings account designed to help individuals with HDHPs pay for qualified medical expenses. You (and your employer, if applicable) can contribute to the account, and the money can be used to cover things like doctor visits, prescriptions, dental and vision care, and even some over-the-counter medications.

Triple Tax Benefits

One of the biggest advantages of an HSA is its triple tax benefit:

• Contributions are tax-deductible, reducing your taxable income.
• Earnings grow tax-free if invested.
• Withdrawals are tax-free when used for qualified medical expenses.

This makes HSAs a valuable tool for both short-term medical spending and long-term financial planning.

Use It Now or Save It for Later

Unlike Flexible Spending Accounts (FSAs), the funds in an HSA roll over from year to year, and the account stays with you even if you change jobs or retire. That means you can build up savings over time—and even use your HSA as a supplemental retirement account, since after age 65 you can use the funds for non-medical expenses without penalty (though taxes will apply).

Are You Eligible?

To contribute to an HSA, you must:

• Be enrolled in a qualified HDHP
• Not be enrolled in Medicare
• Not be claimed as a dependent on someone else’s tax return

Final Thoughts

If you’re looking for a smart way to manage healthcare costs and invest in your future, an HSA is worth considering. It’s one of the few tools that lets you save pre-tax dollars, grow them tax-free, and spend them tax-free—making it a triple win for your wallet.