Qualifying health insurance plans, like High-Deductible Health Plans, or HDHPs, can be supplemented with a Health Savings Account (HSA).
An HSA is a tax-free, interest-earning savings account that you can build up with funds to use for qualifying medical expenses.
Here are some of the benefits of an HSA:
- Both you and your employer can choose to contribute money to the account.
- This account is owned by you, meaning you can maximize the earning potential with investments and savings opportunities.
- An HSA can increase your retirement savings, as untouched funds stay with you regardless of job changes and retirement and go to your beneficiaries in the event of your death.
- HSA funds can be applied to any expenses that count toward your deductible or other healthcare expenses and qualifying items.
- On years that your healthcare expenses are lower, your HSA can build up in savings based on contributions and accumulated interest.
The Internal Revenue Service sets a maximum amount every year that can be contributed to an HSA, with extra catch-up contributions for eligible individuals aged 55 or older, usually up to $1,000. For 2026, contribution limits are $4,400 for individuals and $8,750 for families.
If you are enrolled in Medicare, you can no longer contribute to an HSA, but you can still invest or spend any remaining funds in your account.
If you have questions regarding what may be HSA-eligible, lists of eligible items can be found through HSA providers and the IRS guidelines. There are also online stores that only sell qualified items. These expenses either will be paid for with tax-free dollars or will be eligible for reimbursement and can be claimed on your tax forms through your HSA account.
If you have any further questions about HSA plans or how to use your HSA, please reach out to your Schauer Group representative.
