Health Savings Account
A Health Savings Account (HSA) is a tax-advantaged bank account used for qualified medical expenses. To open one, you must be enrolled in a high-deductible health plan and not be covered by other specific plans, like Medicare or Medicaid. For 2025, the IRS set maximum contributions at $4,300 for individuals and $8,550 for families, with an extra “catch-up” of $1,000 for those 55 or older. Distributions can cover various medical costs, from deductibles to dental and vision, with specifics defined by IRS guidelines. HSAs offer several benefits: they offer security against unexpected medical bills, reduce insurance premiums, and are flexible in usage. Plus, they’re entirely under the owner’s control, portable across jobs, and come with triple tax advantages.
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