Health Savings Account (HSA)
The Health Savings Account (HSA) is a tax-free interest bearing account that can be used to pay for medical expenses. To qualify, the individual must have a high deductible health insurance plan.
Benefits:
- Annual contributions into an interest-bearing checking account are tax-deductible. Contributions can be made all at once or throughout the year.
- Interest is earned tax-free
Features:
- You have until April 15, or your tax-filing deadline, to contribute for the prior year.
- Write checks or use a debit card to pay for medical expenses throughout the year. Amounts distributed are not taxable provided they are used for medical expenses.
- Or, you can pay your medical expenses out-of-pocket and let HSA balances accumulate tax-free.
- There are no withdrawal requirements.
- You select beneficiaries who will receive the HSA in the event of your death
- A minimum deposit of $100 is required to open the account.
Contribution and Out-of-Pocket Limits
For Health Savings Accounts and High-Deductible Health Plans
| 2024 | |
|---|---|
| HSA contribution limit (employer+employee) | Self-Only: $4,150 Family: $8,300 |
| HSA catch-up contributions (age 55 or older) | $1,000 |
| High-deductible Health Plan (HDHP) minimum deductibles | Self-only: $1,600 Family: $3,200 |
| HDHP maximum out-of-pocket amounts (deductibles, co-payments and other amounts, but not premiums) | Self-Only: $8,050 Family: $16,100 |
