A health savings account is a tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in a high-deductible health plan (HDHP). The funds contributed to an account are not subject to federal income tax at the time of deposit. As long as the funds are used for Qualified Medical Expenses, there will be not tax or penalty on withdrawals from the HSA.
There is a limit to the amount you can contribute to an HSA per year. For 2015 the limits are $3,350 for an individual and $6,650 for a family. For 2016, the individual limit will remain the same at $3,350, while the family limit will increase to $6,750. If you are over age 55, you are allowed to catch up by adding an addition $1,000 to your contribution limit.