Health Savings Account (HSA)

HSAs allow you to make tax-deductible contributions and accumulate earnings tax-free.³ Plus, distributions are also tax-free as long as they are used for qualified medical expenses.

It’s easy to access your account using a special debit card. HSAs can be used to pay for qualified medical expenses—from health insurance deductibles and co-payments, to medications and other out-of-pocket costs, and certain, specific insurance premiums.³

Like an IRA, an HSA belongs to you, not your employer—but unlike an IRA, your employer can contribute to your HSA. The maximum annual HSA contribution for 2025 is $4,300 for an individual plan and $8,550 for a family plan. Your employer’s contributions are tax-free, and you can deduct your contributions on your tax returns.

For more detailed information, view the US Treasury frequently asked questions.

HSA funds not used each year remain in the account earning interest tax-free until they are needed to cover medical expenses at any time in the future. An HSA can be used not only to pay out-of-pocket qualified medical costs and save for future medical expenses, but also allows your unused savings to accumulate from year-to-year and ultimately be used in your retirement!

Your HSA account and all contributions are owned by you. It is yours even if you change jobs, medical plans, marital status, move, etc. You decide when and how to use the money in your account.