Use this account for triple tax-free retirement savings

Like all tax-advantaged accounts, HSAs have restrictions on how much you can contribute.

For 2016, you and your employer can contribute up to $3,350 for individuals and $6,750 for families. In 2017, the limit rises to $3,400 for individuals, but the family limit stays at $6,750. Account holders age 55 and older can contribute an extra $1,000.

Don’t confuse HSAs with flexible spending accounts, which allow you to pay for medical expenses and dependent care with pre-tax dollars. With a flexible spending account, you must spend all your balance each year or you lose it — unless your employer’s plan permits you to roll over $500 to the next year.

“The biggest challenge with HSAs is getting people to realize that it is not ‘use it or lose it’,” said Jeanne Thompson, Fidelity’s senior vice president of workplace investing.