HSAs allow you to stretch your dollars further and put more money in your pocket.
Read on to find out specific details on using an HSA, or jump to a section with these links:
What is an HSA?
HSAs are tax-advantaged member-owned accounts that let you save pre-tax* dollars for future qualified medical expenses. You can invest** HSAs—and funds never expire.
HSAs allow you to take advantage of triple-tax savings.
Make pre-tax payroll contributions
Grow tax-free earnings
Enjoy tax-free distributions for qualified medical expenses
Who is eligible and qualifies for an HSA?
The IRS has requirements for who is eligible to open and contribute to an HSA.
An HSA may be right for you if:
You have a high-deductible health plan (HDHP) with an annual deductible of at least $1,650 for 2025 ($1,700 for 2026) for individual coverage and $3,300 for 2025 ($3,400 for 2026) for family coverage.
Your HDHP out-of-pocket limits do not exceed $8,300 for 2025 ($8,500 for 2026) for individual coverage or $16,600 for 2025 ($17,000 for 2026) for family coverage.
You are not covered by Medicare.
You don’t have another insurance plan such as a spouse’s Healthcare Flexible Spending Account (FSA) or a Health Reimbursement Arrangement (HRA) provided by your employer.
You cannot be claimed as a dependent on another person’s tax return
If my spouse has a health insurance policy through his/her employer, am I eligible to participate in an HSA?
It depends. If your spouse has an individual health insurance policy with no other insurance, and you are enrolled in a qualified HDHP, then yes, you may be eligible to participate in an HSA.
But if your spouse participates in a Healthcare FSA or HRA, and those benefits cover your healthcare expenses too, then no, you are not eligible to participate an HSA. Why? Even though you are not covered by your spouse’s health insurance, the Internal Revenue Service (IRS) considers your spouse’s Healthcare FSA or HRA to be “other insurance.”
An exception would be if your spouse has an HSA-Compatible limited purpose FSA or what’s sometimes referred to as a “limited-purpose” HRA that covers vision and dental care expenses only. If your spouse participates in either an HSA-Compatible limited purpose FSA or a limited-purpose HRA, then you may be eligible to participate in an HSA.
Note: It is the members’ responsibility to ensure eligibility requirements are met as well as if they are eligible for the expenses submitted.
What are the components of a High-Deductible Health Plan?
Before you open an HSA, the IRS requires that you enroll in a qualified HDHP.
The HDHP is the insurance component of HSA-qualified health coverage. Some HDHPs offer first-dollar coverage, which provides access to the plan's co-pay or co-insurance from the start, regardless of the deductible. This type of coverage is not HSA-eligible.
What makes an HDHP:
A lower monthly premium than traditional health plans
A higher annual deductible than traditional health plans
A maximum limit on the total amount you are required to pay out of your own pocket for in-network deductibles, co-payments and coinsurance
Premiums are not included in this maximum limit.
Contact your health insurance company to see if your plan qualifies.
The specific IRS requirements:
Minimum deductibles:
2025 Individual $1,650 | Family $3,300
2026 Individual $1,700 | Family $3,400
Maximum out of pocket:
2025 Individual $8,300 | Family $16,600
2026 Individual $8,500 | Family $17,000
HSA qualifying medical expenses
You can use your HSA to pay for qualified medical expenses. Qualified medical expenses are defined by the IRS and include medical care, vision and dental care expenses like braces/orthodontia, face masks, prescription drugs, and payments for long term care services.
Check out this list of eligible expenses. You can easily type in search items, like doctor's visits, pain relievers, face masks, laser eye surgery or LASIK, or insulin testing supplies to see if they’re eligible to use your funds on.
Note: You can't treat insurance premiums as qualified medical expenses unless the premiums are:
Long-term insurance (maximum annual withdrawal varies based on age)
Health care continuation coverage (e.g. COBRA)
Health care coverage while receiving unemployment compensation under federal or state law
Medicare (Part A, B, and/or D) or other health care coverage if you were 65 or older (other than premiums for a Medicare supplemental policy)
HSA maximum yearly contribution limits
The HSA contribution limits for applicable plan years are:
| 2025 | 2026 |
Individual coverage | $4,300 | $4,400 |
Family coverage | $8,550 | $8,750 |
Catch-up (age 55 or older) | Additional $1,000 | Additional $1,000 |
Employer contributions to HSA
If your employer contributes to your HSA, the employer contribution is combined with your contribution when calculating your contribution limit.
For example, if you are an individual under age 55 wanting to reach the maximum $4,300 (2025)/$4,400 (2026) and your employer contributes $500 to your HSA, you would be able to contribute $3,800 (2025)/$3,900 (2026) for the year and reach the maximum of $4,300 (2025)/$4,400 (2026).
Do my HSA funds rollover?
HSA funds rollover and are always your funds to keep. With an HSA, you can take your healthcare nest egg with you wherever your career takes you.
Your HSA is yours to keep, even if you change jobs, switch healthcare plans, or retire.
If you lose your job and elect to retain your high-deductible health plan under COBRA, you may even pay the COBRA premiums from your HSA.
The money in your account always rollover year to year—there’s no “use it or lose it” risk.
Who can contribute to my HSA?
Anyone may contribute to an HSA on behalf of an eligible HSA holder:
Employer
Family member
Any other person
Note: The sum of all contributions for a calendar year (from all sources) must not exceed the IRS defined contribution limits.
Who can use my HSA funds?
You can use your HSA to pay the qualified medical expenses for you, your spouse and dependents, as long as their expenses are not otherwise reimbursed.
How do HSA plan options fit my needs?
Make more informed decisions about your HSA with these helpful tools:
Plan comparison tool
Compare two health plans to see the benefits and savings from an HSA-qualified plan.
Enter your plan details and estimate your annual medical expenses and view how the plans compare side-by-side. You can save and email your personalized results.
Contribution calculator
Find out how much you can contribute to your HSA.
View the amount you can contribute and the payroll deductions needed to reach that amount. You can also see estimated tax savings.
Future balance calculator
See how much your HSA can grow.
Enter your current account balance, annual contributions and average expenses to see an estimate of how your balance can grow over the next 10 years.
When are HSA Funds Available?
Your HSA funds are available as you make contributions. You can set up monthly recurring payments, as well as make additional payments to your HSA until you have met the yearly contribution limit.
*HSAs are never taxed at a federal income tax level when used appropriately for qualified medical expenses. Also, most states recognize HSA funds as tax-deductible with very few exceptions. Please consult a tax advisor regarding your state’s specific rules.
**Investments are subject to risk, including the possible loss of the principal invested, and are not FDIC or NCUA insured, or guaranteed by HealthEquity, Inc. Investing through the HealthEquity investment platform is subject to the terms and conditions of the Health Savings Account Custodial Agreement and any applicable investment supplement. Investing may not be suitable for everyone and before making any investments, review the fund’s prospectus.
HealthEquity does not provide legal, tax or financial advice.