A Health Savings Account (HSA) is designed to work with a qualifying high-deductible health plan (HDHP). The money goes in tax-free, grows income tax-free and comes out income tax-free when you use it for qualified medical expenses. You can carry over unused funds from year to year and the account is yours to keep even if you change jobs, change health plans or retire.
Qualified medical expenses (QME) are designated by the IRS. They include medical, dental, vision and prescription expenses.