An HSA lets you save for medical costs with unusually generous tax breaks. To use one, you need the right kind of health plan.
Key points
- You need HSA-eligible coverage, usually a high-deductible health plan, to contribute to an HSA.
- For 2026, you can contribute up to $4,400 with self-only coverage or $8,750 with family coverage, plus $1,000 if you’re 55 or older.
- Contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are tax-free.
- Since 2026, Bronze and catastrophic Marketplace plans count as HSA-eligible.
- Unused money rolls over every year and stays yours if you change jobs.
A health savings account (HSA) is a savings account for medical costs that comes with three tax advantages. It’s paired with a health plan that has a higher deductible, so it suits people who can cover routine costs and want to save for the future.
Who can contribute
You generally need:
- HSA-eligible coverage, usually a high-deductible health plan (HDHP).
- No other disqualifying coverage, such as most general-purpose flexible spending accounts.
- To not be enrolled in Medicare, and not be claimed as someone else’s dependent.
Since 2026, Bronze and catastrophic plans bought through the Marketplace also count as HSA-eligible.
2026 contribution limits
| Coverage | Limit |
|---|---|
| Self-only | $4,400 |
| Family | $8,750 |
| Extra if 55 or older | $1,000 |
You can make contributions for a year until the tax filing deadline the following April.
The triple tax advantage
- Contributions are tax-deductible, or pre-tax if made through payroll.
- Growth from interest or investments is tax-free.
- Withdrawals for qualified medical expenses are tax-free.
Helpful tip
Keep receipts for medical expenses. You can reimburse yourself from your HSA for qualified expenses you paid after opening the account, even years later.
Using an HSA well
- Build a cushion at least equal to your deductible.
- Invest the rest for the long term, if your HSA provider allows it and you’re comfortable with the risk.
- Check investment fees, which vary between providers.
- Take it with you: the account stays yours when you change jobs or plans.
Is an HDHP right for you?
High-deductible plans usually have lower premiums but higher costs when you get care. Compare total costs using our guide to health insurance terms, and if you buy your own coverage, see our Marketplace guide.
Frequently asked questions
What’s the difference between an HSA and an FSA?
An HSA belongs to you, rolls over every year and requires HSA-eligible coverage. A flexible spending account is set up by an employer and usually has use-it-or-lose-it rules.
Can I use HSA money for non-medical costs?
Yes, but before age 65 those withdrawals are taxed and usually face a 20% penalty. After 65, non-medical withdrawals are taxed as income without the penalty.
Can I contribute once I’m on Medicare?
No. Once you’re enrolled in Medicare, you can no longer contribute, though you can still spend the money already in your account.
Can I use an HSA with direct primary care?
Since 2026, a direct primary care membership doesn’t stop you contributing, as long as the fee stays within IRS limits. You can also pay those fees from your HSA.
This guide is general information, not insurance, tax or legal advice. Rules, limits and deadlines change each year, so check HealthCare.gov, Medicare.gov or your insurer for your situation.