Health Savings Account
Frequently Asked Questions
A Health Savings Account, or HSA, is a tax-advantaged account that allows you to set aside money to pay for eligible healthcare expenses.
You must be enrolled in a qualified High Deductible Health Plan and meet IRS eligibility requirements.
You can use HSA funds for eligible medical, dental, vision, and prescription expenses.
Yes. Unused HSA funds roll over from year to year and remain in your account.
Yes. Your HSA belongs to you, even if you change jobs, retire, or change health plans.
Yes. Employers may contribute to an employee’s HSA, and those contributions count toward the annual IRS limit.
Yes. You may contribute your own funds up to the annual IRS contribution limit.
HSA contributions may provide tax advantages, including pre-tax payroll contributions or tax-deductible personal contributions.
Yes. HSA funds may be used for eligible healthcare expenses for yourself, your spouse, and qualified dependents.
Yes. Many dental and vision expenses are considered qualified medical expenses.
Yes. HSA funds can generally be used for eligible prescription medications.
Many over-the-counter healthcare items may be eligible, including certain medications and medical supplies.
Non-qualified expenses may be subject to income tax and, if you are under age 65, an additional tax penalty.
Some HSA providers allow you to invest funds once your account reaches a certain balance.
Once enrolled in Medicare, you generally cannot make new HSA contributions, but you may still use existing HSA funds for eligible expenses.
In many cases, you may adjust your HSA contribution amount during the year, as long as you stay within IRS limits.
Most health insurance premiums are not eligible, but some exceptions may apply, such as certain Medicare or COBRA premiums.
Your HSA remains yours in retirement and can continue to be used for eligible healthcare expenses.
Your HSA stays with you. You may continue using the funds for eligible expenses even after leaving your employer.
You can review IRS guidance or contact your HSA administrator for a current list of qualified medical expenses.