Health Savings Account

Pay for eligible out-of-pocket medical expenses using a tax-free HSA ^[1],[2]

HSA contributions are no longer limited by a health plan's deductible amount, resulting in higher contribution amounts for most HSA holders

To be eligible, you must be enrolled in a high-deductible health plan.

• You may not be entitled to or enrolled in benefits under Medicare
• You must not be claimed as a dependent on another person's tax return

Self-only coverage: the maximum yearly contribution amount for 2025 is $4,300

Fund your HSA through a one-time transfer of assets from FSA or HRA plans, a one-time IRA direct rollover, or make regular contributions

• All transactions limited to the maximum annual contribution amount. If you have an FSA, you can make an HSA contribution with excess FSA funds that expire in the first quarter of every year

Family coverage: the maximum yearly contribution amount for 2025 is $8,550 if under the age of 55

You can open or fund your HSA at any time until your federal tax return is due. Normally, by December 31st

Those 55 and older can contribute an additional $1,000 as a catch-up contribution

Distributions for non-medical expenses are taxable and subject to a 20% penalty if withdrawn before age 65 (except in the cases of death or disability)