Definition

Health Savings Account (HSA)

An individual, portable account paired with a high-deductible health plan.

Full definition

An HSA is an individually owned, portable account used with a qualifying high-deductible health plan. HSAs are consumer accounts; 401(h) accounts are employer-sponsored sub-accounts inside a qualified pension plan. The two are not substitutes.

Related terms

401(h) Account

A separate sub-account inside a qualified pension or annuity plan used to pay certain retiree medical benefits.

Health Reimbursement Arrangement (HRA)

An employer-funded arrangement that reimburses employees for qualified medical expenses.

Availability, tax treatment, and plan design depend on the facts and circumstances of the employer, plan document, participant group, and applicable law. 401h.com provides general educational information only — not tax, legal, actuarial, investment, or ERISA advice. Consult qualified tax, legal, actuarial, and plan professionals.