What Is a Health Savings Account?
A Health Savings Account (HSA) is a plan designed to help employees manage the rising costs of health care by allowing them to set aside money to pay for out-of-pocket medical expenses and to save for 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.
2023 HSA Contribution Limits
- Self-only — $3,850
- Family — $7,750
- HSA Catch-up Contributions for those ages 55+ — $1,000