HSA (Health Savings Account)
Definition current for the 2026 plan year · Last reviewed July 2026
In one sentence: A triple-tax-advantaged account paired with high-deductible plans — deductible going in, tax-free growth, tax-free medical withdrawals.
The health savings account is the most tax-advantaged account in the US code: contributions are deductible, growth is untaxed, and withdrawals for qualified medical costs are tax-free — all three, forever, with no use-it-or-lose-it. You can only contribute while enrolled in an HSA-qualified high-deductible plan; 2026 limits are roughly $4,400 individual / $8,750 family (+$1,000 at 55+).
For 2026 marketplace shoppers the HSA has a superpower beyond the triple tax break: contributions reduce MAGI, the number measured against the 400% subsidy cliff. A household $3,000 over the line can contribute $3,001 to an HSA and restore a subsidy worth thousands — the contribution literally pays for itself the same year.
The optimal pattern for healthy, higher-income shoppers: cheapest HSA-eligible bronze plan + max HSA contribution + pay small bills in cash while the account compounds. Details in the self-employed guide.