HSA
Business & Finance abbreviation · Personal Finance
| Stands for | Health savings account |
|---|---|
| Categories | Business & Finance |
HSA stands for Health savings account, a personal finance abbreviation also used in medicine.
Tax-advantaged account paired with a high-deductible health plan that lets the holder pay qualified medical costs with pre-tax money. Contributions are deductible, growth is untaxed and medical withdrawals are tax-free, a "triple tax advantage" no other US account offers. Balances roll over indefinitely and stay with the person when changing jobs.
Example: I pay small prescriptions out of pocket and let my HSA stay invested for medical costs in retirement.
Usage notes
Created by the Medicare Prescription Drug, Improvement, and Modernization Act of 2003. After age 65, money can be taken out for any purpose and is taxed as ordinary income, without the 20% penalty that applies to younger account holders. Enrolling in Medicare ends eligibility to contribute. Unlike an FSA, the account belongs to the employee rather than the employer.
Related abbreviations
More personal finance abbreviations
- FHSA – First Home Savings Account
- FICO – Fair Isaac Corporation credit score
- FIRE – Financial independence, retire early
- FRA – Full retirement age
- FSA – Flexible spending account
- HCOL – High cost of living
- HYSA – High-yield savings account
- IBR – Income-Based Repayment
- IDR – Income-driven repayment
- IRA – Individual retirement account
- ISA – Individual Savings Account
- IVA – Individual voluntary arrangement