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Health Savings Accounts

Your HSA Questions, Answered

Navigating the details of a Health Savings Account (HSA) can bring up plenty of questions. We've gathered the most common inquiries and provided simple, direct answers to help you understand how an HSA works and how it can benefit you. Explore the topics below to find the information you need to make confident decisions about your healthcare savings.

What is a Health Savings Account?

A tax-advantaged savings account for individuals and families with HSA-eligible high-deductible health insurance plans. Money contributed to your HSA is tax deductible, earnings from contributions grow tax deferred and you can make tax-free withdrawals to pay for qualified medical expenses.

Who is eligible to open an HSA?

You must…

Be enrolled in an HSA-eligible health insurance plan, also known as a high-deductible health plan (HDHP).
NOT have disqualifying non-HDHP health plan coverage as defined by the Internal Revenue Service (IRS).
NOT be enrolled in Medicare.
NOT be claimed as a dependent on someone else’s tax return.

Who can contribute to an HSA?

Health savings accounts (HSAs) let you save on a pre-tax basis (or allow you to take a deduction when you file your return) and pay for qualified medical expenses with tax-free dollars, now and in the future. HSA owners and employers can contribute to HSAs.

Are there limits to HSA savings?

Yes. Each year the IRS sets individual and family HSA contribution limits. You decide how much to contribute each year, as long as the total HSA contributions do not exceed the government-mandated maximum.

What are HSA qualified medical expenses?

Generally, HSA qualifying expenses are those medical expenses that are not otherwise reimbursed by insurance or any other source. You can use an HSA for ongoing medical services and treatments, vision and dental expenses, and common over-the-counter medications and related products. The list of qualifying expenses has changed over time; be sure to review the guidelines set by the IRS for the most up-to-date information.

How do I pay for HSA qualified medical expenses?

Open an HSA and get a debit card to pay for qualified medical expenses at pharmacies, clinics, and online. Your purchases are tracked automatically, so you can see spending right away—no reimbursement wait needed.