Health Savings Account

HSAs (health savings accounts) allow Americans under age 65 to make tax-deductible contributions to a special account tied to a high-deductible health insurance policy. Earnings inside the HSA are tax deferred in a similar manner to an IRA. A taxpayer must be covered under a High Deductible Health Plan (HDHP) and meet other requirements to be eligible to have contributions made to a HSA.