HSA (Health Savings Account)
A triple-tax-advantaged account for medical expenses — only available with a high-deductible health plan (HDHP).
The only US account with three tax breaks: contributions are pre-tax (or deductible), growth is tax-free, and qualified medical withdrawals are tax-free. 2026 contribution limits are roughly $4,300 self-only / $8,550 family, plus a $1,000 catch-up at 55+. After 65, non-medical withdrawals are taxed as ordinary income (no penalty), so an HSA effectively becomes a stealth IRA. Best strategy: contribute the max, pay current medical bills out of pocket if you can, and let the HSA invest and grow for decades — keep your receipts to reimburse yourself tax-free at any point in the future.
Related
- 401(k) — An employer-sponsored retirement account funded with pre-tax payroll deductions.
- Roth IRA — An after-tax retirement account where withdrawals in retirement are tax-free.
- Marginal tax rate — The tax rate on the next dollar you earn.