What is a Health Savings Account? 
A Health Savings Account (HSA) is a tax-advantaged savings account, used in combination with a High Deductible Health Plan (HDHP). It allows you to save money tax-free, exclusively for the purpose of paying or reimbursing qualified medical expenses.
 
How does an HSA work?
Each year, you decide how much to contribute to your HSA account. However, there are government-mandated maximums that you cannot exceed. In 2019, these limits are $3,500 for an individual and $7,000 for a family. Adults over 55 are allowed an annual "catch-up" contribution of $1,000 more. If you have an HSA through your workplace, we offer free direct deposit, so you can easily set up automatic contributions directly from your payroll.
 
You will receive a debit card or checks linked to your HSA account, and you can use the funds on eligible medical expenses. This includes deductibles, copays and coinsurance, plus other qualified medical expenses not covered by your plan. 
 
What are the benefits of an HSA?
More easily drawn upon for emergencies than their IRA counterparts, HSAs can "roll over" year-to-year to create a sizable retirement nest egg, so you never have to worry about losing your savings. This can also be seen as a “rainy day" health care savings plan. 
 
Did we mention tax savings?
A properly established HSA program allows contributions by you or your employer to not be included in gross income – they are tax-free. Payouts for qualified medical expenses are also tax-free. Accumulated interest and dividends are tax-free or tax-deferred.
 

 *Tax exempt status depends upon individual circumstances.  Check with your tax preparer or legal counsel to determine your eligibility.