Health Savings Accounts (HSAs) were created by the Medicare bill signed by President Bush on December 8, 2003 and are designed to help individuals save for future qualified medical and retiree health expenses on a tax-free basis.

Health Savings Accounts are a great option for saving money if you have enough discretionary income to put money (or make a contribution as I like to call it) to your HSA account on a regular basis. That being said, HSA accounts aren’t necessarily for everyone as money can only be taken out (tax free) in order to pay for qualified medical expenses. If money is otherwise taken out, it can be taxed.