HSA Resources

HSA Frequently Asked Questions

Below are some of the most commonly asked questions about HSAs. Click a topic and drill down to find the answer.

You can also find additional information in the Education Video Library.

Select a Category and then Select a Question.

• HSAs

  • What is a Health Savings Account (HSA)?

  • How does an HSA work?

  • Who is eligible to open an HSA?

  • Who is eligible to contribute to an HSA?

  • How is money deposited to my HSA?

  • What is the value of an HSA?

  • Why establish an HSA? What are the advantages?

  • What is a high-deductible health plan (HDHP)?

  • How do I know if my health plan is a "qualifying (or qualified)” high-deductible health plan (HDHP)?

  • How do HSAs differ from health care flexible spending accounts (FSAs)?

  • How is an HSA different from a savings account?

  • Can my spouse and I have a joint HSA, like our regular checking account?

  • Why is my employer offering an HSA in conjunction with a qualified HDHP?

  • May I have more than one HSA?

• Eligibility & Enrollment

  • Can I have an HSA in addition to an IRA or other qualified retirement plan?

  • My spouse's employer provides low-deductible family coverage at no cost. I am covered under my spouse's plan. If I enroll in my employer's qualified HDHP, am I eligible for an HSA?

• Contributions

  • Can I contribute stock to my HSA?

  • Does how much I contribute to my IRA limit how much I can contribute to my HSA?

• Distributions

  • Can I pay out-of-pocket eligible expenses with after-tax dollars instead of using my HSA funds?

  • What health care expenses does my HSA cover?

• Manage Your HSA

  • What happens to my HSA if I become disabled?

  • What happens to my HSA if I quit my job or otherwise leave my employer?

• No Longer a Member

  • I no longer participate in a qualified HDHP. Can I still receive tax-free distributions to reimburse my qualified expenses or those of or my family?

  • How are distributions from my HSA taxed after I am no longer eligible to contribute?

• Reaching Age 65

  • What happens to the money in my HSA after I reach age 65?

• Death

  • What happens to my HSA when I die?

• Tax Considerations

  • What does pre-tax mean?

  • What is an "above the line" tax deduction?

  • Is there a limit on how much I may contribute to my HSA and deduct from my taxes each year?

  • If I close my HSA, are there any tax penalties?

  • When will the 20 percent penalty be assessed for a distribution for non-qualified expenses?

  • How are distributions from my HSA taxed?

  • How are distributions from my HSA taxed after I am no longer eligible to contribute?

  • What tax forms will I receive to include with my annual tax filings?

  • What about taxes on the money in my HSA not used for medical expenses?

  • How is my HSA taxed?

  • What is the tax treatment of contributions made by a family member or anyone else to my HSA?

• Rollovers/Transfers, FSAs and HRAs

  • Can I roll over or transfer funds from my HSA or Medical Savings Account (or Archer MSA) into an HSA?

  • Can I roll over or transfer funds from my HSA to my IRA?

  • Can I roll over or transfer funds from my IRA to my HSA?

  • What are Medical Savings Accounts [MSAs], Health Reimbursement Accounts or Health Reimbursement Arrangements [HRAs], and Flexible Spending Accounts [FSAs]?

  • Can I have an HSA and an HRA and/or FSA?

  • What is the difference between health care flexible spending accounts (FSAs) and HSAs?