What is an HSA (Health Savings Account)?

• A. Personal savings account (typically paired with an HDHP), money rolls over year/year and goes with you if you leave the company
• B. A loan program for medical expenses
• C. An employer-provided retirement fund
• D. Insurance policy with one-time payout

Answer: (A)

An HSA, or Health Savings Account, is a personal savings account designed to pay for qualified medical expenses. It’s typically paired with a high-deductible health plan, so you cover more out-of-pocket costs before insurance starts paying. Contributions can come from you (often pre-tax if through payroll), and the money grows tax-free. Withdrawals for qualified medical expenses are also tax-free, making it a tax-advantaged way to save for health costs. The balance rolls over year to year and travels with you if you change jobs or employers, so you don’t lose the funds. This isn’t a loan program, an employer retirement fund, or an insurance policy with a one-time payout; it’s a dedicated, portable savings vehicle for medical expenses.