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Health Saving Accounts

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A Powerful Way to Save

Qualified High Deductible Health Plans (QHDHPs) and Health Savings Accounts (HSAs) are designed to be used together to help you save. Because QHDHPs generally have lower monthly premiums and more out-of-pocket costs, HSAs help you pay for medical expenses before you meet your deductible. You have choice and the control for when and how you use your money.

An HSA is a personal savings account that can be used to pay for medical, dental, vision, prescriptions, and other qualified medical expenses now or into the future.

HSAs have benefits today and into the future


An HSA is like a bank account. You can use it:

As a spending account to help pay for current qualified medical expenses


As a Savings account to pay for future medical expenses, even into retirement

HSA Advantages

An HSA gives you several perks and features that aren’t offered by any other spending account.

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Piggy Bank
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It’s Portable

Unlike other types of spending accounts, you OWN your HSA account. You keep all the money - even if you change jobs or health plans.

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It Grows

Money in your HSA rolls over from year to year. It earns interest. You can even invest your HSA money. There are many ways to grow your account.

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It Gets Triple Tax Savings!

Income Tax: Money is typically taken out of your paycheck before income tax

Interest: You are not taxed on interest or earnings on your account

Qualified Expenses: You don’t pay tax when you use your money on qualified health care expenses.


How HSAs Work

You can contribute to your HSA either through payroll deduction or from your own bank account. The amount of money you put into your HSA is up to you, and your employer may also contribute. However, you cannot continue to contribute once you’re eligible for Medicare. The IRS also sets a maximum on how much can be contributed in total for the year. 

Contribution Limits

2019 Maximum
HSA Contribution
Single coverage
Family coverage
2020 Maximum
HSA Contribution
Single coverage
Family coverage
Health Care Expenses

Qualified Health Care Expenses

The money in your HSA can pay for:

  • Medical deductibles or coinsurance
  • Prescriptions
  • Dental expenses and orthodontia
  • Vision expenses like eyeglasses and laser eye surgery
  • Over-the-counter products like contact solution and band-aids



Extra Benefits for Retirement

Your HSA is a great partner for your IRA or 401(k). Once you turn 65, your HSA can be used for even MORE expenses, like health insurance premiums and other non-eligible expenses without a tax penalty.*

*Distributions for these non-qualified expenses will be subject to income taxes.


Watch Your Savings Stack Up

HSAs are powerful investment vehicles and can be a great addition to your retirement strategy.  And, there are a number of ways to help your money grow outside of your payroll contributions.

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Roll Overs

At the end of each year, the money you don’t spend gets carried over year after year That means if you don’t use all of the money you contribute during the year, you’ll see growth.

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Catch-Up Contributions

If you’re age 55 or older, your contribution maximum is raised by $1,000 per year.



Combine with a Limited Purpose FSA

Use a Limited Purpose Flexible Spending Account (FSA) to pay for your dental and vision expenses throughout the year and keep more money in your HSA.


Invest Your Money

Take advantage of integrated investment options, much like a 401(k).

Here’s how your investments can grow over time:
A contribution of $50 a month over 25 years
Tax Savings
Increase the contribution to $200 a month over 25 years
Tax Savings
Maximum family contribution of $6,750 a year over 25 years
Tax Savings

For illustrative purposes only. Savings calculations assume (i) pre-tax contributions are used to fund the HSA, (ii) tax rates are 15%- federal, 5% - state, and 7.65% FICA, and (iii) average annual interest rate earnings of 3%. Actual results may vary.

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Ask your employer about opening an HSA today.

HSAs give you more value for your health care dollars and allow you to take control of expenses both now and into the future.

Planning for the future is easier, too. Maximize your savings with triple tax benefits and investment opportunities. And, HSAs roll over every year and give you extra benefits after you turn 65 – giving you one powerful tool for retirement!

To take advantage of an HSA, you must be enrolled in a qualified high deductible health plan. Additional eligibility requirements may apply. The IRS sets maximum amounts on how much you can contribute each year. These amounts are subject to change by the IRS based on inflation.



Disclaimer: Not all states follow federal tax rules with respect to contributions made to HSAs. Please consult your tax advisor to determine the extent to which these contributions may be subject to state income tax and wage withholding rules.