What's a health savings account (HSA)?

A special type of savings account. You can only use the money if you're a member of a high-deductible health plan and only to pay for qualified medical expenses. You and your employer can contribute funds to your HSA. The funds contributed to the account aren't subject to federal income tax at the time of deposit. Like a retirement account, you own the funds, no matter where you go or work in the future.