QualifiedHigh-Deductible Health Plans (QHDHPs) and Health Savings Accounts (HSAs) are designed to be used together. Since QHDHPs generally have lower monthly premiums and more out-of-pocket costs, HSAs help you pay for qualified health care expenses like prescriptions, coinsurance, vision, dental, and more until you reach your deductible.
Health Saving Account (HSA)
Made for Your Qualified High-Deductible Plan
Made for Your Qualified High-Deductible Plan
QualifiedHigh-Deductible Health Plans (QHDHPs) and Health Savings Accounts (HSAs) are designed to be used together. Since QHDHPs generally have lower monthly premiums and more out-of-pocket costs, HSAs help you pay for qualified health care expenses like prescriptions, coinsurance, vision, dental, and more until you reach your deductible.
A versatile way to save
An HSA is like a bank account. You can use it now to help pay for current qualified medical expenses, or you can save for future expenses — even into retirement.
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HSA Advantages
Your HSA can do some things that other spending accounts can’t.
It's Portable Income
Unlike other spending accounts, you own your HSA. The money you put into an HSA is yours, even if you change jobs, health plans, or retire.
It Grows
Money in your HSA rolls over from year to year, earning interest. You can even invest your HSA money.
It Gets Triple Tax Savings
Income Tax: Money is typically taken out of your paycheck before income tax.
Interest: You are not taxed on interest or earnings on your account.
Qualified Expenses: You don’t pay tax when you use your money on qualified medical expenses.
How HSAs Work
You can contribute to your HSA either through payroll deductions or from your own bank account. The amount of money you put into your HSA is up to you, and your employer may also contribute1—but the IRS does set a maximum contribution limit every year.
Contribution Limits
Single Coverage |
Family Coverage |
|
|---|---|---|
|
2024 HSA Contribution |
$4,150 |
$8,300 |
|
2025 HSA Contribution |
$4,300 |
$8,550 |
Qualified Medical Expenses
You can use your HSA to pay for the following qualified medical expenses:
- Medical deductibles or coinsurance
- Prescriptions
- Dental expenses and orthodontia
- Vision expenses like eyeglasses and laser eye surgery
- Over-the-counter medicines, and products like contact solution and bandages
Making Your HSA Grow
There are lots of ways to make your HSA grow. That’s why it’s such a great way to save for retirement.
Invest Your Money
Once your HSA hits a certain balance, you can invest in a market-leading solution that offers broad consumer choice by providing three different types: Managed, Self-directed or Brokerage. You can manage all aspects of you HSA, including your HSA cash balance and investments within a single website.
Rollovers
At the end of each year, the money you don’t spend gets carried over year after year. That means if you don’t use all of the money you contribute during the year, you will see growth.
Combine with a Limited Purpose FSA
Use a Limited Purpose Flexible Spending Account (FSA) to pay for your dental and vision expenses throughout the year and keep more money in your HSA.
Catch-Up Contributions
If you’re 55 or older, you can put in an extra $1,000 per year.
Making Your HSA grow
See how the savings can stack up with this HSA example2.
Tax Savings |
Balance |
|
|---|---|---|
|
A contribution of $50 a month over 25 years |
$4,148 |
$21,876 |
|
Increase the contribution to $200 a month over 25 years |
$16,590 |
$87,502 |
|
Maximum family contribution of $6,750 a year over 25 years |
$46,650 |
$253,483 |
For illustrative purposes only. Savings calculations assume (i) pre-tax contributions are used to fund the HSA, (ii) tax rates are 15%- federal, 5% - state, and 7.65% FICA, and (iii) average annual interest rate earnings of 3%. Actual results may vary.
Ask Your Employer About Opening An HSA Today
HSAs give you more value for your health care dollars and allow you to take control of expenses both now and into the future.
Planning for the future is easier, too. Maximize your savings with triple tax benefits and investment opportunities. And, HSAs roll over every year and give you extra benefits after you turn 65 – giving you one powerful tool for retirement!
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2You cannot continue to contribute once you’re eligible for Medicare. That’s why it’s often used as away to pay for medical expenses after retirement.
3In some cases, your employer may contribute. The IRS sets different limits on contributions to HSAs and FSAs.
