What is an HSA?

A Health Savings Account (HSA) is like a piggy bank where you can deposit pretax contributions to help you pay for medical care.

Health Savings Account 101

Keep your healthcare dollars under your control and in your pocket.

To qualify for an HSA, you must enroll in an IRS-qualified High Deductible Health Plan (HDHP). These plans typically offer lower premiums compared to traditional plans in exchange for a higher deductible.

HSA Advantages

  • You decide how much money to save.
  • Pre-tax contributions lower your taxable income
  • Tax-free growth earns interest and build savings on a tax-free basis.1
  • Unused funds carry over into the next year.
  • The money stays with you if you change employers
  • Funds can be withdrawn for any purpose without penalty after reaching age 65 (taxes may apply)
  • Use the money to pay for qualified medical expenses, even ones that are not covered by your health plan

Can I open an HSA?

To participate in an HSA, individuals must meet the following requirements:

  1. Be enrolled in an IRS-qualified High Deductible Health Plan (HDHP)
  2. Not be claimed as a dependent on someone else’s tax return
  3. Is not covered by other health insurance (other than what is permitted by IRS) or enrolled in Medicare

Contributions to the account must stop if you are no longer enrolled in an HSA plan or enrolled in Medicare. However, you can continue to use the money in your account to pay for qualified medical expenses tax-free.

HSA Contribution Limits

Tax-free contributions can be made to your HSA up to the IRS maximum contribution limit.








Maximum HSA Contribution





Minimum Deductible





Out-of-Pocket Minimum





Out-of-Pocket Maximum





Qualified Medical Expenses

Your HSA funds can be used to pay for almost all healthcare expenses. This includes copayments, deductible, coinsurance, prescription drugs, eyeglasses, contact lenses, and dental work.

Qualified Medical Expenses Nonqualified Medical Expenses
Hearing aids Life insurance premiums
LASIK surgery Health club fees
In vitro fertilization Special food and beverages
Long-term care premiums Cosmetic surgery
Eyeglasses/contacts Burial expenses
Copayments Maternity clothes
Coinsurance and deductibles Cosmetics
COBRA premiums Medigap premiums
Wheelchairs Spa treatments

1Tax advantages vary by state, check with your tax advisor regarding your specific circumstances.