A health savings account (HSA) help you save money on qualified medical expenses. The funds contributed to the account are not subject to federal income tax at the time you deposit them. Unlike a flexible spending account (FSA), funds roll over and accumulate year after year if you don't spend the full amount - there's no use-it-or-lose-it feature.
HSA funds may be used to pay for qualified medical expenses at any time without owing federal taxes. Withdrawals from the HSA fund for non-medical expenses are treated very similarly to those withdrawals from an IRA. They may provide tax advantages if taken after retirement age,and they incur penalties if taken earlier.
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