Health savings accounts

Health savings accounts (HSAs) allow you to pay for your current health care expenses and save for future qualified health expenses on a tax-free basis.

You, your family members and your employer can make tax-deductible contributions to your account.

You can use your HSA to pay the deductible on your high-deductible health plan and any other qualified expenses (www.irs.gov) your health plan doesn’t cover, such as vision and dental fees, and over-the-counter drugs.

Who qualifies for an HSA

  • You must have a qualified high-deductible health plan (HDHP)
  • You can’t have other health insurance
  • You may have auto, dental, vision, disability and long-term care insurance that pays medical bills

How much can you deposit into your HSA each year?

For 2014, the maximum amount you can deposit is:

  • $3,300 for single coverage
  • $6,500 for family coverage

If you're age 55 or older, you can deposit additional money (also called catch-up contributions) into your HSA account. The maximum annual catch-up contribution you can make is $1,000.

You can’t open up an HSA if you:

  • Enroll in Medicare,
  • Received benefits from the Department of Veterans Affairs during the past three months or
  • Currently participate in an employer-sponsored HSA.

To find out if you qualify, check with your employer’s human resource department.

Updated 09/10/2014

See also

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