A triple-tax-advantaged account for medical expenses, available with a high-deductible health plan.
An HSA offers a rare triple tax benefit: contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are tax-free. You must be enrolled in a high-deductible health plan to contribute. Because unused funds roll over and can be invested, many treat the HSA as a stealth retirement account for future health costs.
Investing HSA funds instead of spending them turns it into a tax-free medical nest egg.