An account for accumulating funds that can be utilized to pay nonreimbursed medical expenses (excluding health insurance premiums) for an individual who works for a small business and is covered by a high-deductible medical plan. The account is funded with tax-deductible contributions by the individual and/or the employer. Amounts contributed to an HSA grow tax-free through investment income, are the property of the account holder, and are portable. HSAs were created in 2003 as an incentive for individuals to save for qualified medical and retiree health expenses on a tax-advantaged basis. Funds withdrawn from the account are not taxable if used for qualified medical expenses. Unused funds may be rolled forward without penalty.