A U.S. taxpayer with a high deductible insurance plan is allowed to open a Health Savings Account (HSA) to help cover some of their medical costs.

The appeal with an HSA is the contribution to the account is tax deductible (similar to a traditional IRA) even if you don't spend money in the current period on medical expenses.

Whether you make contributions personally or via your employer, you need to file Form 8889 to report contributions to the account and any distributions used for medical costs.

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