Why an HSA saves so much
HSA money goes in before income tax, grows tax-free, and comes out tax-free for qualified medical costs. Contributions made through your employer's payroll also skip Social Security and Medicare tax (7.65%).
Things to check
You need a qualifying high-deductible health plan. The IRS sets yearly contribution limits — check irs.gov for the current amounts. California and New Jersey tax HSA contributions at the state level; set state tax to 0 if that applies. Employer contributions count toward the limit.