Health Savings Account
A Health Savings Account, or HSA, is an IRA-like account that is designed exclusively for covering medical expenses incurred by the person who establishes the account and his or her dependents.
In order for HSA assets to retain their tax-free status, they may only be withdrawn and used for certain expenses. These expenses include: most medical, dental and vision care, premiums for long-term care insurance, health insurance when unemployed, and certain health insurance premiums after age 65. Funds used for non-medical expenses after age 65 are treated as taxable income.