HSA Guide
HSA like a pro
Stretch your dollars further and put more money in your pocket. Health Savings Accounts empower you to save more, spend smarter and invest in your healthcare.
What is a Health Savings Account
Expect Remarkable
A Health Savings Account (HSA) is a tax-advantaged account that lets you set aside pre-tax dollars to pay for qualified medical expenses. It works with a High-Deductible Health Plan (HDHP) and is yours to keep — even if you change jobs or health plans.
Am I eligible for a Health Savings Account?
You must be enrolled in a qualifying High-Deductible Health Plan and not covered by any other non-HDHP health coverage, Medicare, or claimed as a dependent.
How do I sign up?
Enroll during your open enrollment period. Your employer or plan administrator will provide instructions to open your HealthEquity HSA.
Save
Enjoy lower health plan premiums
HDHPs typically have lower monthly premiums than traditional plans, giving you more take-home pay.
Keep your premium savings
Redirect your premium savings into your HSA for tax-free growth.
Take advantage of triple-tax savings1
Contributions go in pre-tax, grow tax-free, and come out tax-free for qualified expenses.
Roll over funds
Unused HSA funds roll over year to year — no use-it-or-lose-it rule.
The more you contribute, the more you save
| Year | Self-only | Family | Catch-up |
|---|---|---|---|
| 2025 | $4,300 | $8,550 | +$1,000 (55+) |
| 2026 | $4,400 | $8,750 | +$1,000 (55+) |
Spend
HSA qualified medical expenses
Use your HSA for thousands of qualified expenses — doctor visits, prescriptions, dental, vision, and more.
Your savings can add up fast
$1,200
average annual tax savings for HSA account holders
Become a savvy healthcare consumer
Consider generics
Generic medications can cost 80–85% less than brand-name equivalents.
Prefer urgent care
Urgent care visits cost significantly less than emergency room visits for non-emergencies.
Comparison shop
Use HealthEquity tools to compare provider costs before you go.
Invest
Your retirement engine
After age 65 your HSA works like a 401(k) — withdraw for any reason without penalty (ordinary income tax applies for non-medical expenses).
| Feature | HSA | 401(k) |
|---|---|---|
| Pre-tax contributions | ✓ | ✓ |
| Tax-free growth | ✓ | ✗ |
| Tax-free withdrawals (medical) | ✓ | ✗ |
| No RMDs | ✓ | ✗ |
| Rolls over year to year | ✓ | ✓ |
Tools and resources
HSA webinars
Watch live and on-demand webinars to learn how to maximize your HSA.
1HSAs are never taxed at a federal income tax level when used appropriately for qualified medical expenses. Also, most states recognize HSA funds as tax-deductible with very few exceptions. Please consult a tax advisor regarding your state's specific rules.
2Investments are subject to risk, including the possible loss of the principal invested, and are not FDIC or NCUA insured, or guaranteed by HealthEquity, Inc. Investing through the HealthEquity investment platform is subject to the terms and conditions of the Health Savings Account Custodial Agreement and any applicable investment supplement. Investing may not be suitable for everyone and before making any investments, review the fund's prospectus.
3Accounts must be activated via the HealthEquity website in order to use the mobile app.
4The example used is for illustrative purposes only; actual savings may vary. The figure is based on average tax rates, including state, federal and FICA taxes.
5Federal Trade Commission, 2020: Consumer.ftc.gov/articles/0063-generic-drugs-and-low-cost-prescriptions
6Debt.Org, 2020: Debt.org/medical/emergency-room-urgent-care-costs/
7You should carefully consider the investment objectives, risks, charges and expenses of any mutual fund before investing. A prospectus and, if available, a summary prospectus containing this and other important information can be obtained by visiting the Vanguard website at vanguard.com. Please read the prospectus carefully before investing.
8Eligibility and contribution amount may vary based on your health plan selection and other qualifying activities. Please see your plan documents for complete details.
HealthEquity does not provide legal, tax or financial advice. Always consult a professional when making life-changing decisions.