Health Savings Account Guide
Everything you need to know about HSAs — how they work, who's eligible, and how to maximize your tax-advantaged savings.
What is an HSA?
A Health Savings Account (HSA) is a tax-advantaged account that helps you save for qualified medical expenses. HSAs offer a triple tax advantage: contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are tax-free. To be eligible, you need a high-deductible health plan (HDHP) or qualifying ACA Bronze plan. For 2025, contribution limits are $4,300 for individuals and $8,550 for families. Unlike FSAs, HSA funds roll over year after year — they never expire. You can also invest your HSA funds for long-term growth, making it a powerful retirement savings tool.
HSA Guide FAQs
HSA contributions reduce your taxable income, your money grows tax-free, and withdrawals for qualified medical expenses are never taxed at the federal level.
Yes. Once your HSA balance reaches a certain threshold, you can invest in mutual funds and other investment options for long-term growth.
After age 65, you can use HSA funds for any purpose — qualified medical expenses remain tax-free, and non-medical withdrawals are taxed as regular income (similar to a traditional IRA).