Health Savings Account
The Health Savings Account (HSA) is a tax-free interest bearing account that can be used to pay for medical expenses. To qualify, the individual must have a high deductible health insurance plan.
Benefits:
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Annual contributions into an interest-bearing checking account are tax-deductible. Contributions can be made all at once or throughout the year.
- Interest is earned tax-free
Features:
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You have until April 15, or your tax-filing deadline, to contribute for the prior year.
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Write checks or use a debit card to pay for medical expenses throughout the year. Amounts distributed are not taxable provided they are used for medical expenses.
- Or, you can pay your medical expenses out-of-pocket and let HSA balances accumulate tax-free.
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There are no withdrawal requirements.
- You select beneficiaries who will receive the HSA in the event of your death
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A minimum deposit of $100 is required to open the account.
Contribution and Out-of-Pocket Limits
For Health Savings Accounts and High-Deductible Health Plans
| 2023 | |
|---|---|
| HSA contribution limit (employer+employee) | Self-Only: $3,850 Family: $7,750 |
| HSA catch-up contributions (age 55 or older) | $1,000 |
| High-deductible Health Plan (HDHP) minimum deductibles | Self-only: $1,500 Family: $3,000 |
| HDHP maximum out-of-pocket amounts (deductibles, co-payments and other amounts, but not premiums) | Self-Only: $7,500 Family: $15,000 |
