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Glossary
A health savings account (HSA) is a long-term savings account you set up to pay for health care expenses throughout the year.
A health savings account (HSA) is a long-term savings account you can set up to pay for health care expenses. Think of it like a retirement account, but for medical expenses.
A HSA works alongside an insurance plan, so you need to purchase a HSA-eligible plan to use one. You can contribute pre- or post-tax to your HSA and use that money to pay for qualified medical expenses throughout the year.
Word to the wise: If you take money out for nonqualified medical expenses before you turn 65, you’ll pay a tax penalty.