What Is an HSA?
A Health Savings Account (HSA) is a tax-advantaged account for medical expenses, available to those enrolled in a qualified High-Deductible Health Plan (HDHP). It offers a unique triple tax advantage: contributions are tax-deductible, growth is tax-free, and qualified withdrawals are tax-free.
HSA vs FSA — Key Difference
Unlike an FSA (Flexible Spending Account), HSA funds roll over indefinitely and aren't lost at year-end. HSAs are also portable — they stay with you even if you change employers, unlike most FSAs.
Frequently Asked Questions
$4,400 for self-only coverage, $8,750 for family coverage. Individuals 55+ can add a $1,000 catch-up contribution on top of these limits.
Yes, most HSA providers allow investing funds above a minimum cash threshold (often $1,000-$2,000), similar to a 401(k), letting your HSA grow tax-free over time for future medical expenses, including in retirement.
Unlike an FSA, HSA funds roll over indefinitely with no "use it or lose it" rule. After age 65, you can withdraw funds for any purpose without penalty (though non-medical withdrawals are taxed as income).