Health Savings Accounts
An HSA can reduce your health insurance premiums while you set aside funds to pay for current and future medical expenses.
HSA contributions are tax-deductible (subject to limitations), and withdrawals are tax-free when used for qualifying medical expenses.
If you want to take control of your health care costs—avoiding high premiums and complicated health plans—then an HSA could be the right plan for you.
These are just some of the benefits of an HSA:
- Lower premium costs— by enrolling in a mandatory high deductible health plan you potentially reduce your monthly premiums.
- Contributions are tax deductible (subject to limitations).
- Contributions can be invested (similar to a self-directed IRA)—with a self-directed HSA, funds can be invested with the possibility of accumulating tax-free or tax-deferred profits in investments that you know best.
- Distributions are tax-free when money is withdrawn to pay for qualified medical expenses.
- Contributions can be carried over from one tax year to the next—unlike the “use it or lose it” requirement imposed upon flexible spending accounts.
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Eligibility and Contribution Limits
In order to establish an HSA, you must first be covered under a high-deductible health plan (HDHP).
Furthermore, you cannot be enrolled in any other type of health insurance coverage unless such coverage is considered disregarded coverage.
Disregarded coverage includes insurance related to accident, disability, vision, dental care or long-term care. This also includes insurance providing coverage regarding a special disease or illness or insurance paying a fixed amount per day for hospitalization coverage.
You are not eligible for an HSA if you:
- Are enrolled in Medicare Part D or in any other Medicare benefit program
- Can be claimed as a dependent on someone else’s tax return
It is important to note that an HDHP can offer either self-only or family coverage. Below are contribution limits and the requirements for eligibility.

2021 – HSA Contribution Limits
Health Savings Account (HSA) Contribution Limits |
High Deductible
Health Plan Coverage |
Standard Limit
(under age 55) |
Catch-up Limit
(Age 55 – 65, 65 and older if you qualify) |
Individual (Self Only) |
$3,600 |
$4,600 |
Family |
$7,200 |
$8,200 |
Health Plan Requirements |
High Deductible
Health Plan Coverage |
Minimum Deductible
of at Least: |
Annual Out-of-Pocket Expense Limit |
Individual (Self Only) |
$1,400 |
$7,000 |
Family |
$2,800 |
$14,000 |
2021 HSA Contribution Deadline is 4/15/2022. |
2022 – HSA Contribution Limits
Health Savings Account (HSA) Contribution Limits |
High Deductible
Health Plan Coverage |
Standard Limit
(under age 55) |
Catch-up Limit
(Age 55 – 65, 65 and older if you qualify) |
Individual (Self Only) |
$3,650 |
$4,650 |
Family |
$7,300 |
$8,300 |
Health Plan Requirements |
High Deductible
Health Plan Coverage |
Minimum Deductible
of at Least: |
Annual Out-of-Pocket Expense Limit |
Individual (Self Only) |
$1,400 |
$7,050 |
Family |
$2,800 |
$14,100 |
2021 HSA Contribution Deadline is 4/15/2023. |
For more HSA information see IRA Publication 969.