Health Savings Accounts

What is a HSA?

Health Savings Accounts (HSAs) were designed to help individuals save for future qualified medical and retiree health expenses on a tax-free basis and are used in conjunction with a “High Deductible Health Plan” (HDHP). The funds contributed to an account are not subject to federal income tax at the time of deposit. Unlike a flexible spending account (FSA), HSA funds roll over and accumulate year to year if they are not spent. HSAs are owned by the individual, which differentiates them from company-owned Health Reimbursement Arrangements (HRA) that are an alternate tax-deductible source of funds paired with either high-deductible health plans or standard health plans.

2024 offers individuals and families additional opportunities to save for current and future health care with a Health Savings Account (HSA):

• HSA holders can choose to save up to $4,150 for an individual and $8,300 for a family (HSA holders 55 and older get to save an extra $1,000 which mean $5,150 for an individual and $9,300 for family) –and these contributions are 100% tax deductible from gross income.
• Minimum annual deductibles are $1,600 for self-only coverage or $3,200 for family coverage.
• Annual out-of-package expenses (deductibles, copayments, and other amounts, but not premiums) cannot exceed $8,050 for self-only coverage and $16,100 for family coverage.