A health savings account (HSA) can help you lower your taxes, pay health care expenses more easily and even save for retirement.
Your HSA contributions are tax-deductible. They lower your taxable income – so you pay lower taxes.
Use your HSA money to pay coinsurance or copay amounts and your deductible (all tax-free). And you can pay eligible expenses that may not be covered by your health plan, like dental care, orthodontia, vision care and many more. See a list of eligible expenses (PDF).
You decide when and how to spend or save the money in your HSA.
You can invest a portion of your HSA balance in a wide variety of stocks, bonds and mutual funds. And all your HSA earnings are tax-free .
You can use the account to save money for retirement. After age 65, you can withdraw money from your health savings account for any reason with no penalties. Find out more about saving for retirement.