What is an HSA?

HSAs are available for people with a qualified high deductible health plan. Learn more about the basics of an HSA to see if it’s the right solution for you!

What’s the Difference Between an HSA and FSA?

The largest difference between a Flexible Spending Account (FSA) and a Health Savings Account (HSA) is an individual controls an HSA and funds roll over from year to year, while an employer owns the FSA and funds must be used in the plan year or an individual loses them.

Four Reasons to Choose an HSA

  1. They’re cutting edge and popular with millennials. Many employers have moved to consumer directed health plans, and a portion of our nation’s young adults are opting for the higher deductible plans.

  1. They are affordable, portable and have great tax advantages. There are contribution limits depending on your insurance coverage level.

    Contribution and Out-of-Pocket Limits for Health Savings Accounts and High-Deductible Health Plans

    Contributions 2024 2023 Change
    HSA contribution limit
    employer + employee    		 Self-only: $4,150
    Family: $8,300    		 Self-only: $3,850
    Family: $7,750    		 Self-only: +$300
    Family: +$550
    HSA catch-up contributions
    age 55 and older    		 $1,000 $1,000 No change
    (set by statute)
    HDHP minimum deductibles Self-only: $1,600
    Family: $3,200    		 Self-only: $1,500
    Family: $3,000    		 Self-only: +$100
    Family: +$200
    HDHP maximum out-of-pocket amounts
    (deductibles, co-payments and other amounts, but not premiums)    		 Self-only: $8,050
    Family: $16,000    		 Self-only: $7,500
    Family: $15,000    		 Self-only: +$550
    Family: +$1,100
    The deadline for contributions is the same as your tax filing deadline excluding extensions. For most individuals this is April 15.
  2. They increase engagement and control. You can manage your money and have more control over how and when to spend it.

  3. They are an IRA in disguise and have a Triple Tax Advantage. You can contribute to your HSA and accrue interest just as you would in an Individual Retirement Account (IRA). In fact, funds from an existing IRA can even be rolled over into an HSA. HSAs are also popular for their triple-tax advantage:

    • Account contributions are pre-tax or tax-deductible
    • All earnings, interest, and investment returns are tax free
    • Spending is tax-free when used for qualified medical expense

Use the myHSA Planner tool for ways to benefit from your HSA.

How Can You Use Funds in the HSA?

        The Internal Revenue Service (IRS) identifies the types of medical products and services that qualify. Types of eligible medical expenses include services for medical, dental, and vision as well as many over-the-counter medicines and products.

Ready to Enroll in a Health Savings Account?

      You can check out our how-to video to get started, follow along with our account opening guide, or contact us for more information.

      If your employer offers HSAs through HSA Central, contact them before enrolling. This ensures you’re enrolled under the correct employer group.

Consult a tax advisor