A Health Savings Account (HSA) is a type of personal savings account available to taxpayers in the United States who are enrolled in a high-deductible health plan (HDHP) . The funds contributed to an HSA are not subject to federal income tax at the time of deposit, and they can be used to pay for qualified medical expenses such as deductibles, copayments, coinsurance, and some other expenses. Unlike a flexible spending account (FSA), HSA funds roll over and accumulate year to year if they are not spent. HSAs are owned by the individual, which differentiates them from company-owned Health Reimbursement Arrangements (HRA) that are an alternate tax-deductible source of funds paired with either high-deductible health plans or standard health plans.

To be eligible to contribute to an HSA, you must be covered by an HSA-eligible plan, which is generally a health plan that only covers preventive services before the deductible. The monthly premium for an HSA-eligible plan is usually lower, but you pay more out-of-pocket health care costs yourself before your insurance company starts to pay its share. Banks, credit unions, and other financial institutions offer HSAs.

HSAs have potential financial benefits for now and later. Not only can you save pre-tax dollars in this account to pay for qualified medical expenses, but HSAs can also provide valuable retirement benefits. As long as you use your HSA funds for qualified medical expenses, you wont owe taxes when you take money out of the account. These 3 reasons are why HSAs are considered "triple" tax advantaged.