An HSA is an account that is exempt from taxes and can be established by a taxpayer through a U.S. financial institution. An HSA is intended to be used exclusively for future medical expenses by saving money on a pre-tax basis. The amount contributed to an HSA is contingent upon both the taxpayer's coverage and age. In 2024, the taxpayer or their employer has the option to contribute up to $4,150 for personal coverage or $8,300 for family coverage. An additional $1,000 catch-up contribution is added to those who are over 55 years of age, regardless of the coverage plan. The inclusion of contributions made until April 15, 2025 in HSA contributions for 2024 is possible.

If a health savings account is not used, it won't be forfeited, but it can be rolled over to the following year.