Health Savings Account

A HSA is a tax-advantaged savings account that you can use to pay for qualified medical expenses. It works like a regular bank account, but the money deposited is federal income tax-free, savings grow tax-free and withdrawals for qualified expenses are also federal income tax free. Unlike a FSA, there’s no “use it or lose it” rule. The money is yours and you can use it to save for the future. To deposit money into an HSA you must be enrolled in a high-deductible health plan (Plan 2 – HDHP).

IRS annual contribution limits for 2025:
Individual – $4,300
Family – $8,550
Catch-up for ages 55+ – $1,000