HSA
Certified Financial Planner glossary · Certified Financial Planner
Definition
Health Savings Account paired with a high-deductible health plan, offering triple tax advantages when used for qualified medical expenses.
HSA in plain English
Someone eligible for a high-deductible health plan still pays medical bills from a taxable brokerage account. An HSA paired with an HDHP offers triple tax advantages when used for qualified medical expenses: deductible contributions, tax-deferred growth, and tax-free qualified withdrawals. Exhaust that free tax shelter correctly before recommending taxable alternatives for the same medical dollars. Eligibility hinges on the HDHP pairing, so do not fund an HSA beside a disqualifying plan.
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