Contributions to a Health Savings Account (HSA) generally receive which federal tax treatment?

Explanation

HSAs offer a rare triple tax advantage: contributions are deductible or made pre-tax, the account grows tax-free, and withdrawals for qualified medical expenses are tax-free. Contributions are not taxable when made, the balance does carry over year to year, and funds are not forfeited at year-end. This favorable treatment, combined with the balance being the owner's to keep, makes the HSA a powerful savings tool alongside a high-deductible plan.