A Health Spending Account is a special type of ‘bank’ account (it’s actually a ‘Trust Account’), established under Canada Revenue Agency rules, that allows a Canadian tax payer to set aside a portion of their gross income before tax, pay no tax on this money, and then deposit the full amount into an account to be used exclusively for the family’s health care spending.
Note: There is nothing in legislation referred to as a “Health Spending Account”. A Health Spending Account is a generic term that covers both Health & Welfare Trusts (HWT), and Personal Health Services Plans (PHSP).