How do HSAs work?
Who is this for?
If you're interested in health savings accounts, or if you have one already, this information can help you understand how they work and help you enroll in the right one.
Health savings accounts are a great way to save money for health care. To open and contribute to an HSA, you must have an HSA-compatible plan.
You can choose how much you want to contribute to your account up to the maximum allowed amount. That amount is set by the federal government and changes every year. You can contribute the maximum allowed amount for any year as long as you have coverage by Dec. 1.
The maximum allowed amounts for 2017 are:
- $3,350 for individuals
- $6,750 for families
How does the account get funded?
Depending on your account, either you or your employer initially fund your HSA. After that, you, your employer and even friends and relatives can put money in it. The money deposited is either not taxed or tax-deductible.
Listed below are the various ways it can be funded. Select one to read more.
If you have a HealthEquity® HSA with us and you want to contribute to your account, you can fill out this HSA Contribution Form (PDF) and follow the instructions to mail or fax the form.
What happens when I enroll in a new plan?
If you enroll in an HSA-compatible plan that uses the same HSA bank, the transition should be seamless. You can keep putting money in your account, keep using it for health care expenses and use the same debit card.
Not all plans are compatible with an HSA. If you choose one that isn't, you still get to keep your account, but you won't be able to put money in it anymore. You can use it for health care expenses until the money is gone, or you can save it for future qualified medical costs.
And if you ever need to switch from a plan you bought directly from us to one of our plans from healthcare.gov, don’t worry about your HSA. If you're in an HSA-compatible plan, you should be able to continue contributing to the account.