Members / HSAs to Z

HSAs to Z: What to know about this beneficial account

 

HSAs are a powerful savings tool for current and future healthcare expenses — as well as one of the strongest ways to save for retirement. Yet studies show that many accountholders just aren’t using them.

So let’s answer the common questions we get about HSAs. Because we’re convinced once you understand how HSAs can help you manage your physical and financial health, you’ll love them just as much as we do!

HOW DO HSAs WORK?

HSAs are personal savings accounts that help you save big on healthcare expenses you have now, and those you’ll have in retirement. The key benefit is tax savings. HSAs are the only account that you can put money into, gain interest on, and use to pay for IRS-qualified healthcare expenses, all tax-free. This means a lower tax bill for you, too. Learn more about this account with triple tax perks that take you from safety net to nest egg.

WATCH OUR VIDEOWatch HSA overview

IS AN HSA RIGHT FOR ME?

To open and contribute money to an HSA, you need to have a qualified high-deductible health plan (HDHP). Unlike traditional health plans like PPOs, HDHPs typically have lower premiums (those payments you make for your health insurance). Think of it this way: If you select an HDHP with a lower premium and put what you save from the lower premium into your HSA, that money stays with you rather than going to the insurance company. And it can be used to save on healthcare costs!

COMPARE PLANS

DOES THE MONEY IN MY HSA EXPIRE?

Nope! The money in your HSA never expires. Even if you change jobs, switch health plans, or retire. It’s your money — for life. That means you don’t have to spend your HSA funds at the end of each year. Just another reason why HSAs are such a great way to save for retirement. Your HSA is here to stay.

CALCULATE SAVINGS

WHAT CAN I PAY FOR WITH MY HSA?

Any IRS-qualified medical expenses. And the list is pretty expansive! Qualified medical expenses include health insurance deductibles, prescriptions, eyeglasses and contact lenses, dental work, and many more. Plus, you can use your HSA to pay for qualified medical expenses for you, your spouse and any children listed as dependents on your tax return!

SEE THE QUALIFIED EXPENSES

HOW MUCH CAN I CONTRIBUTE TO MY HSA?

The IRS sets limits for how much money HSA accountholders can contribute. These limits tend to change each year, so stay informed by checking our IRS Limits & Guidelines page. If you’re wondering how much you can personally contribute, we can help you crunch the numbers!

CALCULATE YOUR CONTRIBUTION

HOW DOES AN HSA COMPARE WITH A 401(k)/IRA?

An HSA is the only account with three tax benefits. These tax savings, combined with other benefits (like the ability to invest), make an HSA one of the most powerful retirement savings tools available. That’s good news, because the average cost of healthcare expenses for a couple in retirement is $360,000.1 So whether you have a 401(k), IRA or another type of savings account, there’s still value in using an HSA.

WATCH VIDEOWatch HSA retirement video

CAN I INVEST MY HSA FUNDS?

Absolutely! That’s one of the core reasons HSAs are such a great way to save for retirement. With HSA Bank, HSA balances of $1,000 or more can be invested in one of our two self-directed investment options, giving you the opportunity to grow your HSA savings even more.2 Plus, you can return your HSA investments back to your HSA cash account at any time. So your money is always there if you need it. Are you an HSA Bank accountholder and want to start investing? Our HSA Guided Portfolio is a great place to start! Check out the video for more information.

WATCH OUR VIDEOWatch HSA investment video

1. HealthView Services: 2018 Retirement Healthcare Costs Data Report. HealthView Services. 2018.

2. Investment accounts are not FDIC insured and they are not bank guaranteed. Investment accounts are not a deposit account, or an obligation of HSA Bank, and they may lose value. They are not guaranteed by any federal government agency.