Health · Chapter 15 · Tax-Advantaged Accounts
Health Savings Account (HSA)
Definition
Individual-owned, fully portable, tax-advantaged account requiring a qualifying HDHP (and no other medical coverage, no Medicare, not a tax dependent). Contributions tax-deductible · growth tax-free · qualified withdrawals tax-free. Unused funds roll over forever. Non-qualified withdrawals: income tax + 20% penalty. Age 55+ catch-up: $1,000. Transfers tax-free to a spouse at death.
In plain English
A medical IRA: triple tax-free if you spend it on care.
Exam tip
The trio: HSA = yours forever, needs HDHP · HRA = employer's money, stays behind · FSA = use it or lose it.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
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