A Health Savings Account (HSA) is an account that is used to save for and pay qualified medical expenses.


What is it?

Health Savings Account (HSA) is an account that is used to save for and pay qualified medical expenses.

  • You qualify for an HSA only if you have a high deductible health plan (HDHP).
  • You can put part of your check, pre-tax, into the HSA to pay for medical expenses that aren’t covered by your medical insurance.
  • The high deductible plan typically keeps premiums lower.
  • Both you and your employer can contribute to HSA accounts.
  • The HSA is owned by youincluding employer contributions from the time of deposit.
  • You make decisions around the use, savings, or in some cases, investment of the funds.
  • You can take your HSA with you if you change jobs.
  • Any unused funds will roll over from year to year, there is no “use it or lose it” risk. 

An HSA has a Triple Tax Advantage

  • HSA contributions are tax deductible– Contribution to HSA accounts come out of your pay check before tax is taken out which reduces your taxable income.
  • Tax free growth– Interest earned by investing HSA funds grow tax free.
  • Tax Free Withdrawals– Money used to pay for qualified medical expenses is also tax free. 

To qualify for an HSA you need to meet the criteria:

*Money that is put into the HSA can be used to pay for qualified medical expenses that insurance doesn’t cover. For example, if your individual deductible is $2,500 and you contributed the maximum allowable amount ($3,500) and you have a medical bill you could use your HSA dollars to pay for the bill.