Health Savings Account
An HSA, or Health Savings Account, is a tax-favored savings account used to pay for qualified medical expenses of the account holder, the account holder’s spouse and any eligible dependents tax free. An HSA is not a Use-It-Or-Lose-It type of account it is a Use-It-Or-Keep-It account. The money not spent in an HSA account by the end of the year stays in the HSA account and the account holder continues to have access to those funds to pay for future qualified medical expenses tax free. With an HSA, over time account holders have the opportunity to accumulate large balances that they can take with them into retirement to use to pay for their retiree medical expenses tax free.
An HSA is an individually owned account, it can never be a “joint account”. However the HSA account holder can use the money in their account to pay for their own qualified medical expenses and the qualified medical expenses of their spouse and any eligible dependents tax free.
To learn more about an HSA listen to this video.