HSA (Health Savings Account)

Intermediate 👥 Human Resources

Definition

A tax-advantaged account for healthcare expenses that few employees actually maximize because who tracks medical spending like an accountant?

Example Usage

If you're enrolled in a high-deductible health plan, you're eligible to contribute up to $4,150 annually to an HSA.

Origin

Created in 2003 as part of Medicare Modernization Act; increasingly popular as employer benefit

Fun Fact

HSAs are often called 'stealth retirement accounts' because unused funds roll over indefinitely

Source: Employee benefits, tax law

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