Health Savings Account (HSA)

A Health Savings Account (HSA) provides a triple tax advantage: contributions are tax-deductible (or pre-tax through payroll), the balance grows tax-free, and withdrawals for qualified medical expenses are tax-free. For 2026, contribution limits are $4,400 for self-only coverage and $8,750 for family coverage, with an additional $1,000 catch-up for people 55 and older. To qualify, you must be enrolled in a High Deductible Health Plan (HDHP) with a minimum deductible of $1,700 (self) or $3,400 (family) and cannot be enrolled in Medicare or claimed as a dependent. Many Bronze and some Silver marketplace plans qualify as HDHPs. Unlike Flexible Spending Accounts (FSAs), HSA balances roll over indefinitely and the account is yours even if you change jobs or insurance.