What is an HSA and can I open one?
An HSA (Health Savings Account) is designed to help you pay for out-of-pocket medical expenses. You qualify for an HSA if you have a high-deductible health insurance plan. Contributions to HSAs can be made pre-income tax, which allows you to make withdrawals for qualified medical expenses tax-free. Unlike a flexible spending account, unused funds can roll over from year to year.
Who qualifies for an HSA?
To be an eligible individual and qualify for an HSA, you must meet the following requirements:
- You are covered under a High Deductible Health Plan (HDHP)
- You have no other health coverage except what is permitted under “Other health coverage,” listed on IRS.gov
- You are not enrolled in Medicare
- You cannot be claimed as a dependent on someone’s tax return*
How much can I contribute?
Contributions can be made by you or your employer up to the maximum limit specified by law. Individuals age 55 and older can make an additional $1,000 catch-up contribution.
HSA Contribution Limits for 2023:
Single $3,850 Family $7,750
Are there tax benefits for me?
You get tax-free earnings* and tax savings when you contribute*.