Magical Medical Fun Money. Doubly-tax-incentivized.
Health Savings Accounts (HSA) are magical medical fun money. You don’t have to pay income tax on whatever money you put into them, nor do you pay money on their growth - provided you’re using them for ‘qualifying medical expenses’. There are annual limits to how much you can contribute.
HSAs are double-tax advantaged. No taxes going in, no taxes coming out.
In order to have an HSA you must be enrolled in a High-Deductible Health Insurance Plan (HDHP) and not have medicare.
Source
- Ultimate List of Tax Advantaged Accounts
- /r/personalfinance