Individual Health Savings Account HSA
A Health Savings Account (HSA) allows you to save for medical expenses and gain potential tax advantages. Paired with a high-deductible health plan, the HSA provides you with a tax-free way to pay for current and save for future medical expenses such as physician visits, prescription drugs, and more.
Account Details
Eligibility
To qualify for a HSA, you:
- Cannot be claimed as a dependent on someone else’s tax return.
- Cannot be covered under another health insurance plan, including Medicare coverage (with certain exceptions).
- Must be enrolled in a high-deductible health plan (HDHP) that does not cover all medical expenses.
Annual Contribution Limits
- Contribute up to $3,850 for self-only coverage.
- Contribute up to $7,750 for family coverage.
- If you are age 55 or over, you may make an additional contribution of $1,000 as a catch-up contribution.
Tax Advantages
- Any parent or guardian can establish a CESA on behalf of a child.
- The child must be younger than 18 when the account is established.
Portability
- A HSA is fully portable. Just as with your IRA, you own the account and can roll it over to another HSA custodian (subject to some restrictions).
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