GLOSSARY · TAX & ESTATE

Health Savings Account (HSA)

A tax-advantaged account for people covered by a high-deductible health plan. Contributions are pre-tax or deductible, growth is untaxed, and withdrawals for qualified medical expenses are tax-free at any age. The balance never expires and can be invested; from 65, withdrawals for other purposes are taxed as income without the additional tax that applies before then.

Also called: HSA, health savings account, triple tax advantage

COMPUTE IT WITH YOUR NUMBERS

HSA as stealth retirement account →How much does my HSA save in tax and what could it grow to by 65?HDHP vs PPO total cost →Which plan costs less for my usage and where is break-even?

LEARN IT PROPERLY

CHAPTER · ARRIVING AND WORKING ON A VISA · FOUNDATIONS401(k), IRA and HSA When You Might Leave CHAPTER · INSURANCE PROTECTION ESSENTIALS · FOUNDATIONSHealth Insurance and the Health Savings Account

SOURCES

Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans. Internal Revenue Service.
Rev. Proc. 2025-19, 2026 inflation-adjusted amounts for HSAs and high-deductible health plans. Internal Revenue Service.
Revenue Procedure 2025-19, 2026 inflation-adjusted amounts for HSAs and high-deductible health plans. Internal Revenue Service.

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