A Health Savings Account (HSA) is an individually owned tax-advantaged account used in conjunction with a qualified high deductible plan of health insurance that can be used to pay for qualified medical expenses including dental, vision and prescription drugs.

When eligible for an HSA, an individual, their employer or both can make tax-deductible contributions to the account. Any investments or interest earned are allowed to grow, tax free. Money coming out of the HSA to pay for qualified medical expenses is also tax free. Unused funds can roll over annually and the account holder can take the funds should they ever change jobs. An HSA is designed to help an individual pay for current eligible medical expenses and save for future medical expenses.