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An HSA is the only triple tax-advantaged account in America. If you are eligible, you can get:
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An HSA, or Health Savings Account, is a type of tax-advantaged savings account that is designed to help individuals with high-deductible health insurance plans (HDHPs) save for medical expenses.
It lets you contribute money on a pre-tax basis (with income you haven't paid taxes on yet) to pay for medical expenses like dental work, vision care, prescriptions, or medical treatments and examinations.
The funds can be used for deductibles, copayments, coinsurance, and other health care expenses, but not for insurance premiums.
An HSA lets you contribute money on a pre-tax basis to spend on medical expenses. It lets you save for your health care and reduce your taxable income at the same time.
Similar to a 401k, the HSA is owned by the employee of a company and can be funded by both the employee and employer.
The unique advantage of HSAs is their triple tax advantage:
You can make contributions to your HSA, and your employer can also choose to make contributions for you. The funds come out of your paycheck and get deducted from your taxable income for the tax year.
Like a retirement plan, the money in your account can be invested in traditional assets like stocks, bonds, mutual funds, and ETFs.