Health Savings Accounts (HSA)

A Health Savings Account (HSA) is a tax-advantaged savings account that lets you set aside money for qualified medical expenses. To qualify, you must be enrolled in a High-Deductible Health Plan (HDHP).

Triple Tax Advantage

• Contributions are tax-deductible — Reduce your taxable income dollar-for-dollar
• Growth is tax-free — Interest and investment earnings grow without being taxed
• Withdrawals are tax-free — When used for qualified medical expenses

2026 HSA Contribution Limits

Source: IRS Rev. Proc. 2025-19. Catch-up contributions are available to those 55 or older who are not yet enrolled in Medicare. If both spouses are 55+, each can make a $1,000 catch-up — but each must have their own individual HSA.

2026 HDHP Requirements to Qualify for an HSA

To contribute to an HSA in 2026, your health plan must qualify as a High-Deductible Health Plan (HDHP) meeting these IRS thresholds:

What You Can Use HSA Funds For

HSA funds can be used for qualified medical expenses including: doctor visits, dental and vision care, prescription drugs, mental health services, medical equipment, and long-term care insurance premiums (within limits). After age 65, funds can be withdrawn for any purpose without penalty — though non-medical withdrawals are taxed as ordinary income (similar to a traditional IRA).

Contribution Deadline

You generally have until the federal income tax filing deadline (typically April 15) to make prior-year HSA contributions. For 2026, you can contribute through approximately April 15, 2027.

HSA + HDHP Strategy

Combining a high-deductible health plan with an HSA is a powerful strategy for healthy individuals who want to minimize premiums, save on taxes, and build a medical emergency fund that rolls over year to year — unlike FSAs, HSA funds never expire.

HSA & Medicare: Important Rule

Once you enroll in Medicare (Part A, B, or D), you can no longer contribute to an HSA. However, you can continue to use existing HSA funds tax-free for qualified medical expenses, including Medicare premiums and out-of-pocket costs. This makes building up your HSA before age 65 especially valuable for retirement healthcare planning.