What is a health savings account (HSA)?

January 27, 2016

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Lauren
Lead Copywriter

 


In technical speak:

An HSA (health savings account) is a medical savings account typically available with high deductible plans. The enrollee of the plan can make contributions to their HSA without being subject to federal income tax. The funds can be used for a range of medical costs. Unused funds roll over each year.

In other words, HSAs are awesome. They’re savings account where you can put in tax-free money and use toward everything from doctor co-pays to dental treatments to birth control. So how do you get your hands on one of these beautiful things? There are two ways:

  • Depending on where you bought your plan, you may be prompted to start an HSA.
  • If you’re not prompted to start an HSA, see if you can open one at your bank. If not, open one at a bank that offers them.

If you’re into saving money (who isn’t?), HSAs are the way to go.

Check out our infographic to see how to best utilize an HSA.