HSA (Health Savings Account)
A tax-advantaged account for medical expenses, available with a high-deductible health plan.
HSAs are the only U.S. account with a triple tax advantage: contributions are pre-tax, growth is tax-free, and qualified medical withdrawals are tax-free. The 2024 IRS limits are $4,150 for self-only coverage and $8,300 for family coverage, with a $1,000 catch-up at age 55+. You must be enrolled in an HSA-eligible high-deductible health plan to contribute. After age 65 the account works like a Traditional IRA for non-medical withdrawals (ordinary income tax, no penalty). Many people use it as a stealth retirement account, investing balances rather than spending them.
A 60-second lesson that puts this term in context, alongside the others, lives inside the Finlo app.