HSA
What is an HSA?
Hi, you may be wondering, What Is an HSA?
A Health Savings Account (HSA) is a tax-advantaged medical savings account that allows individuals to set aside money for qualified out-of-pocket medical expenses. HSAs are paired with high-deductible health plans (HDHPs)—a type of health insurance with lower monthly premiums and higher deductibles compared to traditional plans.
Triple Tax Benefit
HSAs offer a unique triple tax advantage:
Contributions are tax-deductible
Earnings grow tax-free
Withdrawals for qualified medical expenses are tax-free
The money in an HSA is owned by the individual and rolls over year to year if not used.
2025 HSA Contribution Limits (Updated)
To be eligible to contribute to an HSA, you must be enrolled in an HDHP and not have any other health coverage that pays medical expenses before your deductible is met (e.g., traditional plans or a flexible spending account (FSA)).
2025 IRS Contribution Limits:
Individual coverage: Up to $4,150
Family coverage: Up to $8,300
Catch-up contribution (age 55+): Additional $1,000
How Can You Use HSA Funds?
HSAs can be used to pay for a variety of qualified medical expenses, including:
Health insurance deductibles and co-payments
Prescriptions
Vision and dental care
Chiropractic care, acupuncture, and other approved alternative treatments
You can use an HSA debit card, checks, or online bill pay to access your funds. It’s essential to keep receipts as documentation for tax purposes.
HSA as a Retirement Tool
HSAs aren’t just for short-term medical expenses. Over time, HSA funds can be invested, allowing them to grow tax-free—similar to a traditional IRA. After age 65, funds can be withdrawn for any purpose (not just medical expenses), though non-medical withdrawals are taxable.
This makes an HSA a powerful tool for retirement savings, especially for covering medical expenses in your later years.
Is an HSA Right for You?
While HSAs offer many benefits, they are not ideal for everyone.
Consider the following:
✅ Great for:
Individuals who are healthy and have minimal ongoing medical expenses
Those looking to save on taxes or build a healthcare-focused retirement fund
⚠️ May not be ideal for:
Individuals with chronic health conditions
Anyone anticipating high healthcare costs who may struggle with a high deductible
Final Thoughts
A Health Savings Account (HSA) is a flexible, tax-advantaged way to manage healthcare costs and save for the future. However, it’s important to evaluate whether an HDHP suits your health and financial situation.
Would you like help reviewing your options or estimating your eligible HSA contributions? Contact us today to get personalized support.
Looking for Medicare Plans?
You are leaving this website by clicking on this button to review your Medicare options.
Looking for ACA/Obamacare Plans?
North Carolina: We do not offer every plan available in your area. Currently we represent 23 organizations which offer 121 products in your area. Please contact Medicare.gov, 1‑800‑MEDICARE, or your local State Health Insurance Program (SHIP) to get information on all of your options.
South Carolina: We do not offer every plan available in your area. Currently we represent 21 organizations which offer 107 products in your area. Please contact Medicare.gov, 1‑800‑MEDICARE, or your local State Health Insurance Program (SHIP) to get information on all of your options.
Georgia: We do not offer every plan available in your area. Currently we represent 20 organizations which offer 103 products in your area. Please contact Medicare.gov, 1‑800‑MEDICARE, or your local State Health Insurance Program (SHIP) to get information on all of your options.
Tennessee: We do not offer every plan available in your area. Currently we represent 18 organizations which offer 98 products in your area. Please contact Medicare.gov, 1‑800‑MEDICARE, or your local State Health Insurance Program (SHIP) to get information on all of your options.
Florida: We do not offer every plan available in your area. Currently we represent 25 organizations which offer 152 products in your area. Please contact Medicare.gov, 1‑800‑MEDICARE, or your local State Health Insurance Program (SHIP) to get information on all of your options.
Virginia: We do not offer every plan available in your area. Currently we represent 19 organizations which offer 105 products in your area. Please contact Medicare.gov, 1‑800‑MEDICARE, or your local State Health Insurance Program (SHIP) to get information on all of your options.
Maryland: We do not offer every plan available in your area. Currently we represent 17 organizations which offer 89 products in your area. Please contact Medicare.gov, 1‑800‑MEDICARE, or your local State Health Insurance Program (SHIP) to get information on all of your options.
Kansas: We do not offer every plan available in your area. Currently we represent 12 organizations which offer 67 products in your area. Please contact Medicare.gov, 1‑800‑MEDICARE, or your local State Health Insurance Program (SHIP) to get information on all of your options.
Texas: We do not offer every plan available in your area. Currently we represent 28 organizations which offer 164 products in your area. Please contact Medicare.gov, 1‑800‑MEDICARE, or your local State Health Insurance Program (SHIP) to get information on all of your options.
Ohio: We do not offer every plan available in your area. Currently we represent 23 organizations which offer 133 products in your area. Please contact Medicare.gov, 1‑800‑MEDICARE, or your local State Health Insurance Program (SHIP) to get information on all of your options.
Michigan: We do not offer every plan available in your area. Currently we represent 15 organizations which offer 92 products in your area. Please contact Medicare.gov, 1‑800‑MEDICARE, or your local State Health Insurance Program (SHIP) to get information on all of your options.
California: We do not offer every plan available in your area. Currently we represent 33 organizations which offer 178 products in your area. Please contact Medicare.gov, 1‑800‑MEDICARE, or your local State Health Insurance Program (SHIP) to get information on all of your options.
A non-government site hosted by Price Services Group, L.L.C., a health insurance agency
Price Services Group (L.L.C.) is NOT Endorsed by or Affiliated with Medicare or ANY Government Program.
Price Services Group, L.L.C. Copyright 2025 -- All Rights Reserved
Phone: (866) 648-1578 Email: [email protected]
