An HSA is a tax-advantaged benefit account for people enrolled in a high-deductible health plan (HDHP). Account owners make pre-tax contributions each payday (or post-tax, which can be deducted on tax returns) to their HSA in order to pay for IRS-approved eligible expenses for themselves and their dependents.
HSAs Offer a Triple Tax Advantage
- Contributions are tax-free (or tax-deductible)
- Withdrawals for qualified expenses are tax-free
- Account funds grow tax-free, with interest or investment returns
2017 and 2018 Annual Contribution Limits
- Participants with individual coverage: 2017 – $3,400; 2018 – $3,450
- Participants with family coverage: 2017 – $6,750; 2018 – $6,850
- The IRS recently published 2018 HSA regulations for contribution limits, annual deductibles, and out-of-pocket expenses. Learn more about 2018 HSA regulations.
Additional HSA Benefits include: