Frequently Asked Questions
What are the HSA contribution limits for 2026?
For 2026, HSA contribution limits are $4,300 for individuals and $8,550 for families. If age 55 or older, you can add a $1,000 catch-up contribution. HSA funds roll over year to year with no use-it-or-lose-it deadline.
What is the triple tax advantage of an HSA?
HSA offers three tax benefits: 1) Contributions are tax-deductible, 2) Growth is tax-free, 3) Withdrawals for qualified medical expenses are tax-free. After age 65, you can withdraw for any purpose (non-medical withdrawals are taxed like a traditional IRA).
Who is eligible for an HSA?
To contribute to an HSA, you must be covered by a High Deductible Health Plan (HDHP) and not be enrolled in Medicare or claimed as a dependent. For 2026, an HDHP has a minimum deductible of $1,700 (individual) or $3,400 (family).
Can I invest my HSA funds?
Yes, most HSA providers allow you to invest funds once your balance exceeds a threshold (typically $1,000-$2,000). You can invest in mutual funds, index funds, or target-date funds. This makes HSA a powerful stealth retirement account.
What happens to my HSA when I retire?
After age 65, you can use HSA funds for any purpose without penalty. Non-medical withdrawals are taxed as ordinary income (like a Traditional IRA), but medical withdrawals remain tax-free. Many retirees use HSA to cover Medicare premiums and medical expenses tax-free.
HSA vs FSA: what's the difference?
HSAs roll over indefinitely and are portable (you keep it when changing jobs). FSAs have a use-it-or-lose-it rule (some allow $640 rollover in 2026). HSAs require an HDHP; FSAs are available with most health plans. HSAs are better for long-term savings; FSAs are better for predictable annual expenses.