HSA Funds
What are HSA Funds?
Hi, you may be wondering, What Are HSA Funds?
A Health Savings Account (HSA) is a tax-advantaged medical savings account designed to help individuals and families with high-deductible health plans (HDHPs) cover out-of-pocket medical expenses.
HSAs offer a triple tax benefit:
Contributions are tax-deductible
Funds grow tax-free through interest or investments
Withdrawals are tax-free when used for qualified medical expenses.
Who Can Open an HSA?
To be eligible for an HSA, you must be enrolled in a high-deductible health plan (HDHP). Once eligible, contributions can be made via payroll deductions (pre-tax) or personal deposits (which may be tax-deductible).
2025 Contribution Limits (Updated from 2023)
Individual coverage: Up to $4,150
Family coverage: Up to $8,300
Catch-up contribution (age 55+): Additional $1,000
Note: Always confirm with the IRS or your benefits administrator, as limits are subject to annual adjustments.
What Can HSA Funds Be Used For?
HSA funds can be used to pay for a wide range of qualified medical expenses, including:
Health insurance deductibles and co-payments
Prescription medications
Vision and dental care
Mental health services
Chiropractic care and acupuncture
Medical supplies and equipment
Payments can be made using HSA debit cards, checks, or online bill pay. It's important to keep receipts for all HSA-related expenses in case you need to verify that the funds were used properly.
HSAs as a Retirement Tool
Unlike Flexible Spending Accounts (FSAs), HSA funds roll over year to year and are owned by the account holder. Funds can also be invested, similar to an IRA, and grow tax-free. After age 65, HSA funds can be withdrawn for any purpose (not just medical) without penalty—though non-medical withdrawals are taxed as ordinary income.
Summary
HSAs are a powerful tool that combine healthcare spending flexibility with long-term retirement savings potential. If you’re enrolled in an HDHP, contributing to an HSA can help you manage today’s healthcare costs while planning for the future.
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.
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