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.
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
You have until April 15, or your tax-filing deadline, to contribute for the prior year.
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.
There are no withdrawal requirements.
- You select beneficiaries who will receive the HSA in the event of your death
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
|HSA contribution limit |
|HSA catch-up contributions|
(age 55 or older)
|High-deductible Health Plan (HDHP) minimum deductibles||Self-only: $1,500
|HDHP maximum out-of-pocket amounts (deductibles, co-payments and other amounts, but not premiums)||Self-Only: $7,500