HSA 101 — The Triple Tax Advantage (Beginner Friendly)

What’s an HSA?

• Health Savings Account, available with HSA‑eligible high‑deductible health plans (HDHP)
• Triple tax advantage: pre‑tax contributions, tax‑free growth, tax‑free withdrawals for qualified medical expenses

Contribution basics (2025)

• Individual: ~$4k; Family: ~$8k (check current limits)
• Catch‑up (55+): extra $1k

Spend vs invest

• Option 1: pay current medical bills from HSA → tax‑free use now
• Option 2: pay bills out‑of‑pocket and save receipts → invest HSA; reimburse later tax‑free

Picking an HSA provider

• Look for: low fees, broad investment options, easy receipt storage
• Keep $1k–$2k in cash for immediate needs; invest the rest

Strategy tips

• Keep receipts organized (cloud folder)
• Avoid non‑qualified spending — penalties are steep
• Treat HSA like a stealth IRA if you can afford to