2013
The Health Savings Account (HSA) is rapidly becoming a major component of health benefits, mainly because of the growth of high deductible health plans. A HSA can only be used in conjunction with a HDHP.
The benefits are you (and/or your employer) place money in the HSA tax free (pre-tax money for the individual). Interest earned on the account is also tax-free.
EXCEPT …
State taxes apply in New Jersey, Alabama and California on HSA contributions and interest earned. 😡
In addition, money placed into a HSA and not used to pay health care expenses, can be carried over from year to year and into retirement.
It appears New Jersey is determined to remain the second highest tax state in America.
QUINNSCOMMENTARY 
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