Educational purposes only. This content does not constitute investment advice. Read our disclaimer
StockCram is not a broker-dealer, investment adviser, or financial institution. All content is for educational and informational purposes only and should not be construed as personalized investment advice. Consult a qualified financial professional before making investment decisions. Past performance does not guarantee future results.Simple Definition
Health Savings Account - a triple-tax-advantaged account for medical expenses.
Why It Matters
The HSA is the only account with triple tax benefits: contributions are tax-deductible, growth is tax-free, and withdrawals for medical expenses are tax-free. After 65, you can withdraw for any reason (just pay income tax like a 401k). Many experts call it the best retirement account that isn't called a retirement account.
Key Points
- Requires a high-deductible health plan (HDHP) to contribute
- 2024 limits: $4,150 individual, $8,300 family (plus $1,000 catch-up if 55+)
- Pro tip: Pay medical bills out of pocket now, let HSA grow, reimburse yourself years later tax-free
Related Terms
Common Questions
Health Savings Account - a triple-tax-advantaged account for medical expenses. The HSA is the only account with triple tax benefits: contributions are tax-deductible, growth is tax-free, and withdrawals for medical expenses are tax-free. After 65, you can withdraw for any reason (just pay income tax like a 401k).
The HSA is the only account with triple tax benefits: contributions are tax-deductible, growth is tax-free, and withdrawals for medical expenses are tax-free. After 65, you can withdraw for any reason (just pay income tax like a 401k). Many experts call it the best retirement account that isn't called a retirement account.
Requires a high-deductible health plan (HDHP) to contribute
2024 limits: $4,150 individual, $8,300 family (plus $1,000 catch-up if 55+)
Pro tip: Pay medical bills out of pocket now, let HSA grow, reimburse yourself years later tax-free