The Health Savings Account (HSA)
An HSA is a tax-advantaged health savings account for individuals covered under high deductible health plans. Contributions to the HSA can be made by the employer, the employee or both. Contributions are deductible if made by the employee and are excludable from income and wages if made by an employer. Earnings grow tax-free and distributions for qualified medical expenses are tax-free. Unused funds can be carried over from year-to-year, are portable, and can be used into retirement.
