What Is a Health Savings Account?
A Health Savings Account (HSA) is a plan designed to help manage the rising cost of health care by allowing employees to set aside money to pay for out-of-pocket medical expenses and to save for retirement. Think of it as a personal savings account for medical expenses — unused funds will earn interest until they are withdrawn at retirement. Participants in an HSA must be enrolled in a High Deductible Health Plan (HDHP) and not covered by any other non-qualifying health plan.
Employees set aside money on a pre-tax basis — this means as long as they use the money for eligible expenses, they won’t pay income taxes on it. View a list of eligible medical expenses or use our Election Worksheet to estimate health care costs.
2023 HSA Contribution Limits
- Self-only — $3,850
- Family — $7,750
- HSA Catch-up Contributions for those ages 55+ — $1,000
Married couples can find it difficult to determine the amount they are allowed to contribute to an HSA. Download a guide on how much married couples can contribute depending on how they are covered.