HEALTH SAVINGS ACCOUNT (HSA)

An HSA offers the opportunity for you to set aside tax-free money to pay for out-of-pocket health care expenses. Since the HSA is your bank account, the unused funds roll over year to year. If you leave the company, the account goes with you. Consider this your health care 401(k)!

Contributions cannot exceed the annual IRS maximums. In 2026, the IRS maximum for individual coverage is $4,400 and for family coverage is $8,750. 

If you are age 55+, you may contribute an additional $1,000.

When you enroll in an HSA, you’ll receive a HealthEquity debit card for payment of eligible expenses, or you can submit your claim online through healthequity.com or download the HealthEquity app.

Yes! HSAs give you a triple tax advantage: Your contributions to the HSA are not taxed, payment of qualified expenses is tax-free, and earnings are tax-free.

If this sounds too good to be true, there are a few rules you need to follow. If you use your HSA funds for expenses the IRS considers eligible, the money remains tax-free. If you use funds for ineligible expenses, you will pay applicable taxes and an excise tax penalty (currently 20%).

Typically, you’ll want to max out contributions to the HSA first. A Limited Purpose Health Care FSA can only be used for eligible dental and vision expenses, and the account is subject to the IRS use-it or lose-it rules.

There is one exception. If you have a large dental or vision expense coming up, funds in the FSA are immediately available—no waiting until the account is funded!

HSA Eligibility Requirements:

• You must be enrolled in a qualified HDHP.
• You cannot be covered under another non-qualified health plan, including your spouse’s Health Care Flexible Spending Account.
• You cannot be enrolled in Medicare or Tricare.
• You cannot be claimed as a dependent on someone else’s tax return.