Health savings account (HSA)
An HSA is a US savings account for medical costs, open only to people with a qualifying high-deductible health plan. Money goes in before tax, can be invested, and comes out tax-free for qualified medical expenses.
🌍 In the real world
That's three tax breaks in one account, which is why some people use it as an extra retirement account: they pay today's medical bills from other money and leave the HSA invested. After 65, withdrawals for other purposes are taxed like a traditional IRA without the penalty.
The 2025 limit was $4,300 for individual coverage and $8,550 for a family. Unlike a flexible spending account, unspent money rolls over every year and stays yours if you change jobs.
Example
Someone in the 22% bracket who puts $3,000 in an HSA saves $660 in federal income tax that year.
🎮 In Journey Shares
The game has no health costs. It does have the same idea of money you can't touch without a cost: savings above the insured $25,000 can be lost if the bank fails, so plan where each dollar sits. →
🧭 How to use it
The HSA idea for the game: know which of your money is locked up or at risk. Savings above $25,000 aren't insured, and your own claimed shares unlock slowly.
🎮 Learn Health savings account (HSA) the fun way
Try it in a live 3D city with play money: trade shares in real public figures, get margin-called, pay your taxes and rob a bot or two. Free, and nothing real is at stake.
❓ Common questions
Can I invest my HSA?
Many HSA providers let you invest the balance above a minimum in funds. Invested money can go up or down like any investment.
What if I leave my job?
The HSA is yours and moves with you, unlike a flexible spending account.
📜 Where it came from
🧩 Quick check
Which term is this?
“The ____ is a fixed amount of income that isn't taxed at all. Taxpayers take it or itemise their deductions, whichever is larger.”
🔗 Related terms
- 401(k): A 401(k) is a US retirement account offered through an employer.
- IRA (traditional and Roth): An IRA is a US retirement account you open yourself.
- Tax bracket: A tax bracket is a range of income taxed at one rate.
- Standard deduction: The standard deduction is a fixed amount of income that isn't taxed at all.
Categories: Personal finance
Practise with $10,000 in play money
Free. No real money involved.