New to an HSA? Learn the basics
An HSA is a tax-advantaged account that helps you pay for qualified medical expenses. The funds are yours to keep — whether you retire, change jobs or change health plans.
Tax savings
An HSA provides triple tax savings — contributions are not taxed in most states, account growth through interest and investment earnings are not taxed, and withdrawals for qualified medical expenses are income tax free. It’s a win-win to save on health costs today, tomorrow and even through retirement.
Pay the easier way
Your Optum Financial payment card is a fast, easy way to pay for qualified expenses while skipping the paperwork. From doctor visits to everyday care like cold medicine, just use your HSA card and you're all set. Plus, you’ll save up to 30% because you’re using pretax dollars.*
Invest your funds
Save on care today and for the future
An HSA is like a 401(k) for health care — a tax-advantaged account that you can use for qualified medical expenses today or save for the future, including retiree health expenses and post 65 retiree insurance premiums.
Your HSA also includes investment options that can help you grow your balance for the future.
Fund your HSA
Boost your balance
Contributing to your HSA is hassle-free and tax-free. Plus, it’s always on your terms, giving you a health expense cushion when you need it.
Video
What is an HSA?
Learn about the purpose of a health savings account (HSA) and how it works.
Frequently asked questions about your HSA
If you’ve just opened an HSA, browse our new account holder checklist to get off to a good start.
You can also visit our resource library for videos and other educational materials to help you make the most of your HSA.
To be eligible for an HSA, you must meet the following requirements, as defined by the IRS:
- You must be covered under a qualifying high-deductible health plan (HDHP) on the first day of the month.
- You have no other health coverage except what is permitted by the IRS.
- You can’t be claimed as a dependent on someone else’s tax return.
- You are not enrolled in Medicare, TRICARE or TRICARE for Life.
- You haven’t received Veterans Affairs (VA) benefits within the past 3 months, except for preventive care. If you have a disability rating from the VA, this exclusion doesn’t apply.
- You do not have a health care flexible spending account (FSA).
Other restrictions and exceptions may also apply. We recommend that you consult a tax, legal or financial advisor to discuss your personal circumstances.
There are three ways to make a contribution to your HSA.
Employer payroll deductions
Some employers offer payroll deductions. You should check with your employer to see if payroll deduction contributions are available to you.
Set up recurring contributions
Sign in to your account to set up recurring contributions to ensure you’re contributing the maximum allowed by the IRS each year.
Make a one-time contribution
If you haven’t contributed the maximum allowed by the IRS, you can make a one-time contribution to your account at any time.
The IRS sets guidelines for how much you can contribute to an HSA each year. To learn more about the annual HSA contribution limits, visit our HSA contribution limits page.
Sign in to your account today and check your contribution limit.
No. You can keep your account, and the money in it remains yours, no matter what, even if you change jobs or move off a qualifying high-deductible health plan.
No. You can open and contribute to an HSA at age 65 or later as long as you meet HSA eligibility requirements, which are:
- You’re covered on an HSA-qualified medical plan.
- You’re not someone else’s tax dependent.
- You don’t have any conflicting coverage (including enrollment in Medicare). Turning age 65 does not, in and of itself, preclude you from remaining HSA-eligible absent any disqualifying coverage.
You currently have diverse investment options in your HSA, including self-directed mutual funds and digitally managed investments from Betterment. You can choose to invest based on how experienced you are and how involved you want to be in selecting your investments.
You may choose to have Betterment manage your investment funds. Betterment is an independent online investment advisor and combines low-cost, tax-efficient investment strategies with technology and personalized advice to help you pursue your financial goals.
Once you answer a few brief questions about your investment goals and priorities, Betterment will build a personalized portfolio of exchange-traded funds (ETFs) with investment mixes and risk levels that are suitable for you.
You may choose from among a number of pre-selected mutual funds from nationally recognized fund families. These have been selected to offer a broad and diverse range of investment objectives, with high Morningstar ratings and some of the lowest expense ratios in the industry.
Qualified medical expenses
To provide clarity on what expenses qualify for reimbursement from a health savings account (HSA), we have compiled a list of eligible medical expenses.
Helpful resources
We’re here to help
Whether you’ve just opened your HSA or you’re preparing to retire, our resources make it easy to save, pay and invest your HSA dollars.
Video
What is an HSA?
Watch this video to learn about the advantages and the purpose of an HSA and how it works.
Transfer your HSA
It’s easy to combine your HSA funds into one account.
How to use your HSA
Learn how to make deposits to and withdrawals from your HSA.
HSA contribution limits
Take advantage of your HSA’s tax benefits by contributing the maximum.
*Savings compares using pretax income in your HSA to using after-tax income for purchases and assumes a 30% combined tax rate from all applicable federal, state and FICA taxes. Results and amount will vary depending on your circumstances.