Eli5: What is a health savings account and why is it so great?

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Anytime I try to do my benefits the description isn’t helpful in explaining why it’s such a good investment move, aside from stating the obvious that it saves money incase you need it. Do I have to invest it? Or do you just let it sit? I’m confused

In: Economics

11 Answers

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A health savings account is tax free. So as long as you expect to pay some sort of medical expense, including doctors visits, but also medications, medical equipment, etc., you can spend money from your HSA basically like its own debit account without ever paying taxes on it.

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