A Health Savings Account (HSA) is a tax-favored account used in conjunction with an HSA-compatible health plan. The HSA allows you to contribute funds on a pre-tax or tax-deductible basis, which you may use to pay for eligible medical expenses. The beauty of the HSA is that it any balance remaining at the end of the year will rollover automatically to the next year; there is no “use-or-lose” requirement. Your HSA also works towards your retirement savings as it can be invested and earn interest.
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