You’ve been dreaming of using your savings for a vacation or down payment on a home — don’t wipe out that money because of an unexpected health expense. Maintain a dedicated plan for your health with an HSA.
Both you and your employer can make contributions to your account. Changing jobs? Your money moves with you. And there’s no “use it or lose it” policy, so your account will be there for you throughout the years.
Any adult can have an HSA if they:
You must have coverage under an HSA-qualified HDHP to open an HSA. An HDHP is a health insurance plan that does not cover first dollar health care expenses (i.e., your "deductible") but will generally cover you after that. An HDHP generally costs less than what traditional health care coverage costs, so the money that you save on insurance can therefore be put into the Health Savings Account.
¹Consult with a tax advisor.
²You can withdraw funds at any time for any purpose. However, if funds are withdrawn for reasons other than qualified medical expenses, the amount withdrawn will be included as taxable income, and is subject to a 20% penalty.
³First two MasterCard® HSA debit cards are free; first 40 paper checks are free.
4For 2019, the maximum amount you can contribute to an HSA is $3,500 for a single plan or $7,000 for a family plan. There is no minimum contribution; you have no obligation to fund your HSA after it is established.