An HSA — or health savings account — is a tax-advantaged benefits account that works kind of like a personal savings account, if your savings account had restrictions for eligible purchases.
Money from your HSA can be spent on a wide range of eligible costs, from doctor’s visits to new glasses to flu shots.
Unlike FSAs (flexible spending accounts) you don’t get an HSA through your employer. Instead, you own and control the money in your account, although some employers will still contribute to the account on your behalf.
In order to be eligible for an HSA, you need to be two things:
- Under the age of 65
- Enrolled in a high-deductible health insurance plan