A health savings account, or HSA, is the only account in the tax code that gives you a deduction going in, tax-free growth along the way, and tax-free withdrawals for medical costs. You can only fund one while you are covered by a qualifying high deductible health plan, and that qualification test is where most people get stopped.

Before 2026, qualifying meant meeting two federal tests: a deductible at or above a set minimum, and out-of-pocket exposure at or below a set maximum.

Most people treat their Health Savings Account (HSA) like a glorified checking account. Money goes in, a copay or a prescription comes out, and the balance hovers near zero by December. That is a missed opportunity, because the HSA is the only account in the entire tax code that gives you a tax break on the way in, on the way through, and on the way out. Used deliberately, it can become one of the most efficient retirement assets you own.

Here is how it works, and how a little discipline can turn a modest health account into a meaningful tax-free nest egg. The Triple Tax Advantage…