Health Savings Account (HSA)
benefitsAlso known as: HSA, Health Savings Account
Updated · Written and reviewed by Konstantin Iakovlev
Detailed explanation
HSAs offer the only "triple tax advantage" in the U.S. tax code: contributions are deductible (even from FICA when via payroll), growth is tax-free, withdrawals for qualified medical expenses are tax-free. After age 65, non-medical withdrawals are taxed as ordinary income (similar to IRA) but no 10% penalty — making the HSA function as a "stealth IRA" in retirement. Most HSA providers (Fidelity, Lively, HealthEquity) let you invest beyond cash balance in mutual funds. To contribute, you must be enrolled in a qualified HDHP and have NO other disqualifying coverage (general-purpose FSA, Medicare, etc.).
Use these calculators to apply this concept
Related benefits terms
Earned Income Tax Credit (EITC)
The Earned Income Tax Credit (EITC) is a refundable federal tax credit for low-to-moderate-income workers. For 2026, max...
Child Tax Credit (CTC)
The Child Tax Credit (CTC) is a federal tax credit of $2,000 per qualifying child under age 17 in 2026. Up to $1,700 is ...
Flexible Spending Account (FSA)
A Flexible Spending Account (FSA) is a pre-tax employer-sponsored account for medical or dependent-care expenses. 2026 l...
Federal Poverty Level (FPL)
Federal Poverty Level (FPL) is HHS's annual income threshold defining poverty. 2026 FPL: $15,650 single / $32,150 family...
SNAP (Food Stamps)
SNAP (Supplemental Nutrition Assistance Program) provides monthly grocery benefits via EBT card to low-income households...
← Back to glossary · Suggest an addition: [email protected]