Health Savings Account (HSA)

A type of savings account that lets you set aside money on a pre-tax basis to pay for qualified medical expenses. By using untaxed dollars in a Health Savings Account (HSA) to pay for deductibles, copayments, coinsurance, and some other expenses, you can lower your overall health care costs.

An HSA can be used only if you have a High Deductible Health Plan (HDHP) — generally any health plan (including a Marketplace plan) with a deductible of at least $1,350 for an individual or $2,700 for a family. When you view plans in the Marketplace, you can see if they’re “HSA-eligible.”

For 2018, you can contribute up to $3,450 for self-only HDHP coverage and up to $6,900 for family HDHP coverage. HSA funds roll over year to year if you don’t spend them. An HSA may earn interest, which is not taxable.

  • HSA funds roll over and accumulate year to year if they are not spent, unlike most Flex accounts
  • Check with a tax professional to see if you can save by starting an HSA
HSA RatesAnnual Percentage RateAnnual Percentage Yield
HSA Shares0.50%0.50%
Dividends are paid quarterly and calculated from day of deposit to day of withdrawal.